S&P affirms ONGC’s senior unsecured notes at BBB-, outlook stable

MUMBAI: S&P Global Ratings on Monday affirmed state-owned oil producer Oil and Natural Gas Corporation’s (ONGC’s) senior unsecured notes at ‘BBB-’ with stable outlook as increasing adoption of renewable energy has raised risks for the longer-term profitability of global oil and gas producers.

However, ONGC’s standalone credit profile has been affirmed ‘BBB+’ rating, which reflects S&P’s expectations of improving financial ratios.

The agency said, to maintain the rating of ‘BBB+’ for its standalone credit profile, ONGC should continue with a conservative financial policy, given its weakened business position.