S&P affirms Indian Oil

Standard & Poor's said it affirmed its BB+ long-term foreign and local currency corporate credit ratings for Indian Oil Corp. Ltd.

The outlook is stable.

S&P noted although erosion in its credit protection parameters in fiscal year 2005 ended March was evident, they remained consistent with the BB rating category.

Indian Oil's ratings also reflect the strong support from the government of India, specifically as Indian Oil has emerged as a crucial tool in implementing the government's energy and socio-economic policies, the agency said.

S&P said it considers this ongoing deterioration in Indian Oil's financial profile a temporary phenomenon, heightened by the rapid surge in crude oil prices and the government's inability to pass these on immediately to end-product prices.

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