The international Credit Rating Agency Moody's on Thursday warned of downgrading Bharat Petroleum Corporation (BPCL) to Ba1, if the government goes ahead with privatisation by selling its stake to private entity.
Currently, being a state-owned enterprise, BPCL has a BBB- rating which is on par with sovereign rating. Ba1 rating will be equal to its current baseline credit assessment.
Last year, government had sold its entire stake in HPCL to state-owned ONGC but the oil marketeer still enjoys BBB- rating considering ONGC ownership by the government.
Moody's said the proposed stake sale in BPCL would remove the company's links and prompt bond redemption, a credit negative.
