Moody’s affirms ONGC’s Baa1 rating on better oil prices

Moody’s Investors Service has affirmed Oil and Natural Gas Corporation (ONGC)’s Baa1 rating. A Moody’s statement said that it has affirmed ONGC’s local and foreign currency issuer ratings, and the Baa1 ratings on the senior unsecured bonds guaranteed by ONGC and issued by ONGC Videsh Limited and ONGC Videsh Vankorneft Pte. Ltd.

“The ratings affirmation reflects our expectation that ONGC’s credit metrics, which have improved over the last 12 months because of the high net realized oil price, will remain appropriate for its ratings,” said Vikas Halan, a Moody’s Senior Vice President.

“Based on an average net realized oil price assumption of $65 per barrel, we expect that the company’s earnings for fiscal 2020 will be broadly in line with fiscal 2019,” he added.