The government’s latest plan to reduce stake in select state-run companies including oil and gas firms could be credit negative for Indian Oil Corporation (IOC), Bharat Petroleum (BPCL) and Oil India, Moody’s Investors Service said in a report.
“A reduction in government’s direct stake to below 51 per cent could result in a lower assessment of support incorporated into the rating of these companies, a credit negative. The Baa2 ratings of IOCL and BPCL incorporate two notches of uplift, while that of OIL incorporates one notch of uplift,” the report said.
According to the rating agency, a change in policy along with Rs 1.1 trillion disinvestment target indicate that the government’s direct ownership could fall below 51 per cent in the state-owned oil companies Read More
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