Oil and natural gas corporation limited, Energy company

Fitch Ratings has affirmed Hindustan Petroleum Corporation Ltd's (HPCL's) long-term foreign currency issuer default rating at BBB-minus with a negative outlook.It has also affirmed HPCL's senior unsecured rating and the ratings on its outstanding senior unsecured debt at BBB-minus.Fitch said it aligns HPCL's issuer default rating and outlook with the credit profile of its largest shareholder Oil and Natural Gas Corporation Limited (ONGC)."We maintain HPCL's standalone credit profile at 'bb' as we expect net leverage to improve to levels commensurate with standalone credit profile from financial year ending March 2023 (FY23) after deteriorating in FY21 to FY22 to levels where we would consider revising the standalone credit profile downwards."Fitch said its rating case incorporates weak petroleum product demand and narrow gross refining margins in the near term followed by a gradual recovery.It also considered HPCL's strong marketing margins, reflecting the company's ability to benefit from low oil prices in its marketing segment without a full cost pass-through to consumers and to raise prices."However, the improvement in leverage is subject to risks of weak industry conditions persisting beyond our baseline scenario, or capex or shareholder returns that are higher-than-expected, which limits the headroom for its standalone credit profile," said Fitch.( With inputs from ANI )Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

Home

City

Latest News

Cricket

LT Premium

National

International

Maharashtra

Opinions

Chhatrapati Sambhajinagar

Nagpur

Entertainment

Photos

Business

Technology

Sports

Lifestyle

Social Viral

Lokmat Games

Health

Lok Sabha Election 2024

Heatwave In India

Mumbai Water Cut

Maharashtra Lok Sabha Election

IPL 2024

Salman Khan

Oil And Natural Gas Corporation LimitedFOLLOW

Oil and natural gas corporation limited, Latest News

National :Three ONGC employees abducted by armed miscreants in Assam's Sivasargar district

Three employees of the Oil and Natural Gas Corporation (ONGC) have been abducted by unknown armed miscreants from the rig site of ONGC in Assam's Sivasagar district, the ONGC informed on Wednesday. ...

Business :Fitch affirms Hindustan Petroleum at BBB-minus with negative outlook

Fitch Ratings has affirmed Hindustan Petroleum Corporation Ltd's (HPCL's) long-term foreign currency issuer default rating at BBB-minus with a negative outlook. ...