Moody’s warns BPCL of potential rating downgrade on government sale

Mumbai: Moody’s Investors Service on Tuesday said it has placed Bharat Petroleum Corporation’s (BPCLNSE 0.25 %) ‘Baa2’ issuer ratings on review for downgrade, following the government’s decision to sell its entire 53.29 per cent stake in the company and to transfer management control to a strategic buyer.

BPCL’s 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.