Fitch affirms gas utility GAIL India at BBB-minus with negative outlook

Fitch Ratings has affirmed GAIL India Ltd’s long-term foreign-currency issuer default rating at BBB-minus with a negative outlook.

The utility’s rating is capped at the same level as Indian sovereign rating (BBB-minus/negative) based on Fitch’s government-related entities rating criteria, and the negative outlook reflects the outlook on sovereign rating.

“We assess GAIL’s standalone credit profile at ‘bbb’ supported by its dominant market position in the regulated gas-transmission business, diversification into other business segments and healthy credit metrics,” said Fitch.

EBITDA is expected to increase by 30 per cent in the financial year ending March 2022 (FY22) after dropping by 6 per cent in FY21.