The re-election of National Democratic Alliance (NDA) will be credit neutral for the domestic oil and gas sector, research and retaings agency ICRA said today.
It added that even though the government’s initiatives should help companies in the sector going forward, clarity on pricing freedom on sensitive products and adequate subsidy provision will be critical for the financial profile of the Public Sector Undertakings (PSUs).
“The re-election of NDA will be credit neutral for the domestic oil & gas sector. Even while the credit profiles of the oil & gas companies are getting strained due to debt funded consolidations among the PSUs, large dividend payouts and shares buyback, and intervention in the pricing of auto fuels when crude prices were ruling high,” said K Ravichandran, Senior Vice President at ICRA. Read More