Moody’s Investors Service on Wednesday said it has assigned a ‘Baa1’ rating to the proposed senior unsecured notes to be issued by Oil and Natural Gas Corp under its USD 2 billion medium-term note programme.
The outlook on the rating is negative, Moody’s said in a statement.
“The notes’ rating is in line with ONGC’s Baa1 issuer rating, which is in turn primarily driven by its standalone credit profile as captured by the company’s baa1 Baseline Credit Assessment (BCA),” says Vikas Halan, a Moody’s senior vice president.
The rating reflects ONGC’s position as the largest integrated oil and gas company in India with significant reserves, production and crude distillation capacity as also its substantial operating cash flow generation capacity.
