Rating agency Standard and Poor’s on Tuesday said state-owned Oil and Natural Gas Corporation Ltd’s (ONGC) improved earnings outlook for the next 12-18 months will support deleveraging.
“We expect the India-based company to benefit from favorable crude oil prices over FY22 (year ending March 31, 2022),” S&P said in a statement.
“It is rated at “BBB-/Stable”. Our ‘BBB-‘ issuer credit rating on ONGC remains constrained by the sovereign credit rating on India (BBB-/Stable/A-3),” the agency added.
The rating agency has revised Brent crude oil price expectations for the rest of 2021 to $65 per barrel from $60 per barrel earlier. This forecast is significantly higher than about $43 per barrel that ONGC realised in FY21.
