Singapore, September 7 (ANI): Fitch Ratings has affirmed Bharat Petroleum Corporation Ltd's (BPCL's) long-term foreign-currency issuer default rating at BBB-minus.
The outlook is negative. The agency has also affirmed BPCL's senior unsecured rating and the ratings on its outstanding senior unsecured debt at BBB-minus.
Fitch has also affirmed the rating on subsidiary BPRL International Singapore Pte Ltd's US dollar guaranteed notes at BBB-minus.
"We continue to treat the potential divestment of BPCL by Indian government as an event risk. Bidders are conducting due diligence but uncertainty over the bidder consortiums and process complexity including valuation may lead to potential delays."
Fitch said it the risks of further Covid-19 waves and global oil and gas companies' increased focus on energy transition lead to additional uncertainty over the timing and valuation of potentially large acquisitions in the sector.
"We will review the ratings once significant progress is achieved. The potential divestment will lead to a reassessment of BPCL's ratings based on an assessment of its standalone credit profile, credit quality of the potential new parent and Fitch's assessment of the strength of linkages between them." (ANI)