Rating agency Moody's on Tuesday affirmed the ratings for state-run ONGC as ‘stable’ following the oil major's recent acquisition of majority shareholding in Hindustan Petroleum Corporation (HPCl).
The transaction remains subject to requisite approvals from the shareholders of ONGC.
ONGC has acquired 51.11 per cent equity stake in HPCl from the centre for a consideration of `36,915 crore to be paid in cash by January 31, this year.
“Moody's Investors Service, affirmed Oil and Natural Gas Corporation ltd's (ONGC) 'Baa1' local and foreign currency issuer ratings, and the 'Baa1' ratings on the senior unsecured bonds issued by ONGC Videsh ltd and ONGC Videsh Vankorneft Pte ltd, both guaranteed by ONGC,” the rating agency said. “The outlook on all ratings is stable,” it added. ONGC's 'Baa1' issuer ratings are primarily driven by its standalone credit profile.
Moody's noted that ratings reflects ONGC's position as the only integrated oil and gas company in India with significant reserves, production and crude distillation capacity, post the acquisition.
