Credit Rating Revision
ONGC Fitch Rating Affirmed at ‘BBB-’; Standalone Credit Profile Upgraded to ‘bbb+’
NSE
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BSE
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Oil and Natural Gas Corporation Limited (ONGC) informed the stock exchanges that Fitch Ratings has affirmed its Long-Term Foreign Currency Issuer Default Rating (IDR) at ‘BBB-’ with a Stable Outlook, while upgrading the company’s Standalone Credit Profile (SCP) to ‘bbb+’. The company also disclosed its updated credit rating profile across international bonds, commercial paper, and non-convertible debentures.
PRICE-SENSITIVE TRIGGER
Event: Fitch Ratings affirmed ONGC’s issuer rating and upgraded its Standalone Credit Profile.
Type: Credit Rating Revision
Impact: Positive
Immediate Effect: The affirmation of ONGC’s investment-grade issuer rating along with an upgrade in its standalone credit profile strengthens the company’s credit standing and reinforces its financial credibility in domestic and international debt markets.
metrics:
- Fitch Long-Term Foreign Currency IDR: BBB- (Affirmed)
- Fitch Outlook: Stable
- Standalone Credit Profile (SCP): Upgraded to bbb+
- Moody’s Foreign Currency Rating: Baa3 (Stable)
- Moody’s Local Currency Rating: Baa3 (Stable)
- S&P Global Long-Term Issue Rating: BBB (Stable)
- CARE Commercial Paper Rating: CARE A1+
- India Ratings Commercial Paper Rating: IND A1+
- ICRA NCD Rating: [ICRA] AAA (Stable)
- India Ratings NCD Rating: IND AAA (Stable)
- CARE NCD Rating: CARE AAA (Stable)
Highlight:
- Fitch affirmed ONGC’s ‘BBB-’ Long-Term Issuer Default Rating with a Stable Outlook while upgrading the company’s Standalone Credit Profile to ‘bbb+’.
What Happened ?
ONGC informed the exchanges that Fitch Ratings has reaffirmed the company’s investment-grade international credit rating while improving its Standalone Credit Profile.
Alongside the Fitch update, the company disclosed its latest credit ratings from Moody’s, S&P Global, CARE Ratings, ICRA, and India Ratings across various debt instruments, reflecting continued strong access to both domestic and international capital markets.
key details
Credit Rating Update:
- Fitch Ratings affirmed ONGC’s Long-Term Foreign Currency Issuer Default Rating (IDR) at BBB-.
- The rating continues to carry a Stable Outlook.
- Fitch upgraded ONGC’s Standalone Credit Profile (SCP) to bbb+.
- Moody’s continues to rate ONGC’s guaranteed international bonds at Baa3 for both foreign and local currency with a Stable Outlook.
- S&P Global maintained the company’s international bond rating at BBB with a Stable Outlook.
- Domestic commercial paper programmes continue to hold the highest short-term ratings of CARE A1+ and IND A1+.
- ONGC’s non-convertible debentures remain rated AAA by CARE, ICRA, and India Ratings, all carrying Stable Outlooks.
Note:
- The disclosure relates to a credit rating revision and does not involve any change in the company’s financial results, capital structure, or operational performance.
Risk Analysis
Summary:
- The rating action is supportive of ONGC’s credit profile. However, future ratings will continue to depend on the company’s financial performance, leverage, cash generation, and broader energy market conditions.
Key Risks:
- Long-term issuer rating remains unchanged at BBB-.
- Stable Outlook indicates no immediate deterioration in credit quality is anticipated.
- Strong domestic debt ratings support financing flexibility.
- Credit ratings remain subject to periodic review by rating agencies.
Worst Case:
- Any sustained deterioration in financial metrics, significant increase in leverage, or adverse changes in the operating environment could result in future rating pressure.
Risk Level: Low
Company Commentary
- Fitch Ratings affirmed ONGC’s BBB-/Stable Long-Term Issuer Rating.
- The company’s Standalone Credit Profile has been upgraded to bbb+.
- ONGC submitted the revised credit rating disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
- Updated ratings across international bonds, commercial paper, and non-convertible debentures have been placed on record for investors.
Official Exchange Filing: Oil and Natural Gas Corporation Limited
