Moody's rates Petronet Baa3

Moody's Investors Service said it assigned a Baa3 corporate family rating to Petronet LNG Ltd. The outlook is stable.

The agency said the Baa3 rating benefits from the company's dominant position in a growing industry as the first and largest liquefied natural gas terminal operator in India, its large proportion of cash flows from long-term gas purchase and sale agreements with high-quality counterparties, its experienced management team committed to a conservative financial policy and its strong credit metrics with robust liquidity.

The rating is constrained, however, by the company's small scale, its lack of business diversification and the execution risk from its large capital expenditure over the medium-term, Moody's said.

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