Moody’s Investors Service has downgraded Oil and Natural Gas Corporation’s (ONGC) rating in view of the uncertain oil price environment, depleting cash reserves of the government and government guidelines constraining its ability to lower dividends.
The rating agency downgraded ONGC’s local and foreign currency issuer ratings to Baa2 from Baa1. It also downgraded the ratings of the unsecured bonds issued by the company and those issued by its subsidiary ONGC Videsh. The outlook on all ratings remains negative.
ONGC is India’s largest government-run corporation and produces about 70% of India’s crude oil and natural gas. The corporation is the biggest public sector commercial organization in India.
