Moody's cuts Oil and Natural Gas, GAIL India

Moody's Investors Service said it downgraded the local currency rating on Oil and Natural Gas Corp. Ltd. to Baa1 from A2.

Moody's said it also downgraded the local currency rating of GAIL (India) Ltd. to Baa2 from A3. The rating is now aligned with GAIL's Baa2 foreign currency rating, which has been affirmed by Moody's.

The outlook for the ratings of both GAIL and Oil and Natural Gas Corp. is stable.

The agency said the rating actions reflect Moody's view that both Oil and Natural Gas Corp. and GAIL ultimately cannot be completely de-linked from the credit quality of the Indian government and thus their ratings need to more closely reflect the risk that they share with the sovereign.

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