Global credit rating agency, Moody’s Investors Service has lowered Oil India’s (OIL) baseline credit assessment (BCA) to baa3 from baa2 following the acquisition of an oil and gas block in Russia in 2016 and share buyback in June this year.
The lowering of the BCA to baa3 from baa2 is driven by expectation that the company’s credit metrics, which have weakened on the back of acquisition and shareholder payments, are unlikely to recover to a level more appropriate for a baa2 BCA.
Oil India, a Navratna Company, is Asia's oldest and biggest pioneer oil exploration and Production Company.
