Moody’s lowers Oil India’s credit assessment on Numaligarh refinery buyout
Moody’s Investors Service on Tuesday downgraded Oil India’s (OIL’s) baseline credit assessment (BCA) to ‘ba1’ from ‘baa3’ as it expects borrowings to fund the acquisition of the additional 54.2% stake in Numaligarh Refinery (NRL) for Rs 8,676 crore to put additional pressure the company’s credit metrics.
The recent acquisition increased OIL’s stake in NRL to 80.2%. OIL’s credit metrics were already ailing because of low oil and gas prices throughout 2020, the rating agency noted.
