Oil & Natural Gas Corporation Ltd.

Moody's Investors Service has downgraded the local currency rating of Oil and Natural Gas Corporation (ONGC) to Baa1 from A2.  Besides, the rating agency has kept the outlook for the company as stable. The rating actions reflect Moody's view that ONGC ultimately cannot be completely de-linked from the credit quality of the Indian government (Baa3, stable), and thus their ratings need to more closely reflect the risk that they share with the sovereign.

The company is predominantly domestic entities -- ONGC gets over 85% of its revenue from India and have a high degree of direct government ownership (69%).

Oil & Natural Gas Corporation is India's flagship exploration and production company, accounting for 75% of the total proved reserves in India. ONGC has proved reserves of over 7 billion boe and annual production of around 425 million boe.