Fitch cuts Indian Oil view to negative

Fitch Ratings said it affirmed Indian Oil Corp. Ltd.'s long-term foreign-currency issuer default rating at BBB- and national long-term issuer rating at AAA(ind).

The outlook was revised to negative from stable.

While the company will continue receiving state support given its role as the government's arm for policy implementation, the sheer size and timeliness of oil bond issuance and liquidation can create huge spikes in its borrowings and stress liquidity, Fitch said.

The ratings reflect its position as India's largest downstream oil and gas company and are supported by majority state ownership, the agency said.

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