Moody’s Investors Service on Tuesday said it has placed Bharat Petroleum Corp Ltd’s rating on review for downgrade after the government decided to privatise the country’s second-biggest state oil refiner.
“The review for downgrade follows the government of India’s decision to sell its entire 53.29 per cent stake in BPCL and to transfer management control of the company to a strategic buyer,” the rating agency said in a statement.
The ratings placed on review for downgrade include BPCL’s ba1 baseline credit assessment, its Baa2 issuer rating and Baa2 backed senior unsecured rating for Bharat PetroResources Ltd, a subsidiary of BPCL.
BPCL’s Baa2 rating incorporates its ba1 baseline credit assessment (BCA), a measure of its standalone credit strength, and a two-notch uplift from expected extraordinary support from the government.
