Govt decision to privatise BPCL ‘a credit negative’, says Moody’s

The government has announced mega divestment plans for four blue-chip public-sector companies, but Moody’s Investor Service sees it as a setback. Calling the decision to privatise Bharat Petroleum Corporation Ltd (BPCL) “a credit negative”, Moody’s said it may not bode well for BPCL’s ratings.

“Stake sale could remove BPCL’s links to the government and prompt bond redemption,” Moody’ said.

A group of secretaries on Monday cleared strategic sale of government’s entire shareholding in BPCL, Shipping Corporation of India, THDC India and North Eastern Electric Power Corporation Ltd (NEEPCO). It also cleared a sale of 30% equity in Container Corp of India (Concor) from the government holding.