Fitch rates Oil India notes BBB-

Fitch Ratings said it assigned an expected rating of BBB- to Oil India Ltd.'s proposed dollar-denominated notes.

The notes will constitute direct, unconditional, unsubordinated and unsecured obligations of the company, the agency said, and will rank pari passu with other senior unsecured borrowings.

The agency said it believes Oil India's status, ownership and control by the sovereign is strong.

The state of India directly owns about 63.2% of Oil Indi and appoints its chairman and managing director, board representatives and independent directors, the agency explained.

The company has not received tangible financial support from the government due to its strong financial profile, but it does receive indirect support in sourcing upstream acquisitions outside India, Fitch added.

The agency also said it expects the company would receive sovereign support if needed.

The ratings are tempered by the company's small and geographically concentrated reserves, Fitch said.

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