Moody's: Indian Oil notes Baa3

Moody's Investors Service said it assigned a provisional Baa3 senior unsecured foreign currency debt rating to the proposed Singapore dollar-denominated notes to be issued by Indian Oil Corp Ltd.

The outlook is stable.

"IOC's Baa3 rating is supported by its strategic importance to India because of its position as the country's largest refiner and distributor of petroleum products, its ability to borrow in the domestic market without financial covenants and the government's majority ownership," said Vikas Halan, a Moody's vice president and senior analyst, in a news release.

"These strengths are partially offset by its high financial leverage resulting from high fuel subsidies and relatively low complexity refineries that generate lower refining margins," Halan said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.