Moody\u2019s Investors Service has downgraded the corporate family rating of HPCL-Mittal Energy Ltd to Ba2 from Ba1, and changed its outlook on the rating to stable from negative. The rating was downgraded due to weak refining margins arising from a slump in fuel demand, it said in a statement. \u201cThe downgrade to Ba2 reflects the deterioration in HMEL\u2019s credit metrics, driven by the weak refining environment in Asia as well as the company\u2019s expansion into petrochemicals, which has kept HMEL\u2019s borrowings at elevated levels,\u201d said Sweta Patodia, a Moody\u2019s analyst.<\/p>\n
The weak industry conditions are reflected in the Singapore benchmark refining margins, which declined to around $3.7 per barrel for 2019 compared to its historical average of $6-7 a barrel. \u201cThis decline in the benchmark was due to the extremely weak fuel oil spreads, which in turn were driven by International Maritime Organization\u2019s new regulation restricting the use of heavy fuel oil in marine transportation,\u201d it said.<\/p>\n","protected":false},"excerpt":{"rendered":"
Moody\u2019s Investors Service has downgraded the corporate family rating of HPCL-Mittal Energy Ltd to Ba2 from Ba1, and changed its outlook on the rating to stable from negative. The rating was downgraded due to weak refining margins arising from a slump in fuel demand, it said in a statement. \u201cThe downgrade to Ba2 reflects the deterioration in HMEL\u2019s credit metrics, driven by the weak refining environment in Asia as well as the company\u2019s expansion into petrochemicals, which has kept HMEL\u2019s borrowings at elevated levels,\u201d said Sweta Patodia, a Moody\u2019s analyst. The weak industry conditions are reflected in the Singapore benchmark […]<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[130,240,138],"tags":[],"class_list":["post-339244","post","type-post","status-publish","format-standard","hentry","category-newspapers","category-power-the-financial-express","category-the-financial-express"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/339244","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=339244"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/339244\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=339244"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=339244"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=339244"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}