Global rating agency, Moody’s Investors Service has affirmed Indian Oil Corporation’s (IOC) issuer rating at Baa3. The outlook on all ratings is stable. The rating agency has also assigned a provisional ‘Baa3’ rating to the company’s proposed USD-denominated notes.
The Baa3 rating incorporates the company’s baseline credit assessment (BCA) of ba2, and two-notch uplift for government support, given that the Indian government has a 78.92% stake in IOC and the strategic role the company plays in India’s energy sector.
Recently, the company received approval from Ministry of Environment and Forests (MOEF) for its 14 pipeline plan from Paradip unit. The company sought Paradip refinery to post environment nod.
IOC is the largest enterprise in the country and the foremost ranked Fortune Global 500 Company in India and has presence in the complete hydrocarbon value chain from downstream refining & marketing, pipeline transportation, Petrochemicals, E&P and Gas Marketing.