S&P lowers Oil and Natural Gas stand-alone rating

Standard & Poor's said it affirmed the long-term corporate credit rating on Oil and Natural Gas Corp. Ltd. at BBB-, along with the long-term rating on its guaranteed notes at BBB-.

The outlook is stable.

S&P also said it revised downward the company’s stand-alone credit profile to A- from A, reflecting expectations of weaker financial ratios.

The company is government-owned and considered the largest oil and gas exploration and production company in India, S&P said.

The ratings reflect the company's strong competitive position and expectations of maintaining moderate financial ratios despite the fall in oil and gas prices, the agency said.

The ratings are constrained by the BBB- sovereign rating on India, S&P said.

The lowered oil and gas price assumptions will affect the company’s profitability, the agency said, but the Indian government is expected to take steps to improve that profitability.

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