Fitch downgrades Cairn India to ‘B+’ on lower oil prices

Fitch Ratings on Monday said it has downgraded ratings of Vedanta Group firm Cairn India Holdings Ltd’s rating as a drop in oil prices will hurt earnings of the company.

Fitch downgraded the Long-Term Issuer Default Rating (IDR) of Cairn India Holdings Limited (CIHL) to ‘B+’ from ‘BB-’ The outlook is stable.

“The downgrade follows a revision of our forecast for weaker economic growth stemming from the coronavirus pandemic, which is likely to pressure commodities,” it said in a statement.

It revised down its price assumptions for zinc, aluminium and oil and gas, which together contribute about 90 per cent of Vedanta Resources Ltd’s (VRL), previously known as Vedanta Resources PLC) pre-tax profits.