Fitch affirms Bharat Petroleum at BBB-minus with negative outlook

Fitch Ratings has affirmed Bharat Petroleum Corporation Ltd’s (BPCL’s) long-term foreign-currency issuer default rating at BBB-minus with a negative outlook.

The agency has also affirmed BPCL’s senior unsecured rating and the ratings on its outstanding senior unsecured debt at BBB-minus. Fitch has also affirmed the rating on subsidiary BPRL International Singapore Pte Ltd’s US dollar guaranteed notes at BBB-minus.

Fitch said the negative outlook reflects that on the Indian sovereign.

“Our rating case incorporates weak petroleum product demand and gross refining margins in the near term followed by a gradual recovery and strong marketing margins, reflecting BPCL’s ability to reap some benefits from low oil prices in its marketing segment, without a full cost pass-through to consumers.”