Moody’s Investors Service has affirmed the Baa2 ratings of Bharat Petroleum Corporation Limited (BPCL) and its subsidiary BPRL International Singapore Pte Ltd (BPRL). The outlook on the ratings is stable, it said.
“The affirmation of BPCL’s ratings reflects our expectation that its credit profile will remain constrained by high shareholder returns despite its improving operating profile,” said Vikas Halan, a Moody’s senior vice-president. “Consequently, we expect BPCL’s credit metrics will weaken and stay at the weaker end of the tolerance level of its ba1 baseline credit assessment (BCA),” Halan said.
Moody’s expects BPCL’s debt/EBITDA (earnings before interest, taxes, depreciation and amortisation) to stay elevated at 2.7-2.8 times in the fiscal year ending March 2019, compared to 2.8 times in fiscal 2018. Read More