Moody's: No change for Oil and Natural Gas

Moody's Investors Service said it sees no impact on the A2 long-term local-currency rating of Oil and Natural Gas Corp. Ltd. after news of subsidiary ONGC Videsh Ltd.'s agreement on a pre-conditional cash offer for Imperial Energy.

The outlook is stable.

The offer would value Imperial Energy's share capital at about $2.8 billion, but the transaction is subject approvals. Other bidders also may emerge in the process, the agency said.

If Oil and Natural Gas's bid is successful, the transaction is likely to have no impact on the company's rating, given it is in line with its strategy to target acquisitions of oil and gas assets overseas, Moody's said.

The deal also could help increase production and mitigate concerns about the mature state of its domestic reserves, the agency added.

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