Credit rating agency, India Ratings & Research has assigned Indian Oil Corporation’s (IOC) Rs 2,000 crore proposed non-convertible debenture (NCD) programme an expected rating of ‘AAA (exp)’. The agency has also affirmed the company’s Long-Term Issuer Rating at ‘AAA’. The outlook is Stable.
The proposed debentures have a tenor of five years with put and call option at the end of 18 months and 36 months. The proceeds shall be utilized towards funding long-term working capital and/or capital expenditure.
The ratings reflect the company’s position as India’s largest oil refining and marketing company and the dominant position occupied by public sector companies (PSCs) in the national oil industry.
