Kuwait – Mubasher: Oman Telecommunications Co’s (Omantel) acquisition of a minority stake in Kuwait-based Mobile Telecommunications Co (Zain Group) is credit positive, according to Moody’s Investors Service.

The acquisition will help the Omani telecom operator to lower operating costs through synergies.

“Although the transaction will be debt-funded, Omantel’s investment is credit positive because it will allow the company to share technological and sourcing platforms with Zain Group, which will lower operating costs through synergies,” according to Douglas Rowlings, vice president and senior analyst at Moody’s.

“The company has indicated that it would consider various debt instruments when it comes to refinancing the bridge-loan. Omantel can accommodate the additional debt within our 12-18 months quantitative guidance horizon for Omantel’s rating,” he added.