Moody's assigns (P)Baa1 to ONGC's MTN program

Oil and Natural Gas Corporation Ltd.: Update following downgrade to Baa2 - Credit Opinion – 2020/03/30 – US$ 250.00 – ...On 24 March we downgraded Oil and Natural Gas Corporation Ltd.'s (ONGC) local and foreign currency issuer rating to Baa2 from Baa1 as well as its Baseline Credit Assessment (BCA) to baa2 from baa1. The outlook on the rating remains negative. The downgrade reflects our expectation that ONGC's credit profile will be insufficient to remain above India's Baa2 sovereign rating given the increasingly uncertain oil price environment, ONGC's depleted cash reserves and government guidelines that constrain the ability of the company to lower its dividend. The downgrade further reflects that ONGC's credit metrics will weaken beyond the tolerance level for its ratings if oil prices remain low for a prolonged period. ONGC Baa2 issuer ratings are primarily driven by its baa2 BCA, which reflects the company's position as the largest integrated oil and gas company in India with significant reserves, production volume and crude distillation capacity. We assume a high likelihood of extraordinary support...

Moody's downgrades ONGC to Baa2; outlook remains negative - Rating Action – 2020/03/24 – US$ 180.00 – ...ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK. All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications. To the extent permitted by law, MOODY'S and its directors, officers,...

Moody's assigns Baa1 to ONGC's proposed senior unsecured notes - Rating Action – 2019/11/20 – US$ 180.00 – ...MOODY'S CREDIT RATINGS AND MOODY'S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS OR MOODY'S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. CREDIT RATINGS AND MOODY'S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK. All information contained...

Oil and Natural Gas Corporation Ltd.: Update following outlook change to negative - Credit Opinion – 2019/11/18 – US$ 250.00 – ...On 8 November we affirmed Oil and Natural Gas Corporation Ltd.'s (ONGC) Baa1 local and foreign currency issuer rating as well as its baa1 Baseline Credit Assessment (BCA) and changed the outlook to negative from stable. The change in outlook on ONGC followed the change in outlook on India's Baa2 sovereign rating to negative from stable. ONGC's Baa1 ratings are constrained ...

Oil and Natural Gas Corporation Ltd.: Indias natural gas price decrease is credit negative for ONGC - Issuer Comment – 2019/10/03 – US$ 200.00 – ...On 30 September 2019, the Government of India (Baa2 stable) announced a 12.5% reduction in domestic natural gas prices to $3.23 per million British thermal units (mmbtu) from $3.69/mmbtu (on a gross calorific value basis). This is the first reduction in gas prices in India since April 2017. The price decrease is credit negative for Oil and Natural Gas Corporation Ltd. (ONGC, Baa1 stable) because its revenue and earnings from the gas business will fall by around INR14.6 billion ($207 million). The decline is equal to 0.3% of the company's expected consolidated revenue and around 2% of consolidated EBITDA for fiscal 2020, which ends on 31 March 2020. Still, the decline in natural gas revenue and earnings will have a limited effect on ONGC's metrics for fiscal 2020 because its gas business is small compared with its total upstream business. For the year ended March 2019, ONGC derived only about 17% of its revenue (excluding downstream operations) from gas, with most of its revenue coming from...

Oil and Natural Gas Corporation Ltd.: Update to credit analysis - Credit Opinion – 2019/07/19 – US$ 250.00 – ...Oil and Natural Gas Corporation Ltd.'s (ONGC) Baa1 issuer ratings are primarily driven by its standalone credit profile, as captured in its baa1 Baseline Credit Assessment (BCA), which reflects the company's (1) position as the largest integrated oil and gas company in India, with significant reserves, production volume and crude distillation capacity; (2) substantial operating cash flow generation capacity; and (3) credit metrics, which have improved, although they will remain constrained by volatile, but range-bound, oil prices and high shareholder returns. At the same time, the BCA incorporates our expectation that the company will not be asked to share fuel subsidies as long as oil prices remain below $70 per barrel. The rating also incorporates our expectation that ONGC will continue to pursue shareholder- friendly policies, such as high dividend payments and share buybacks. These policies are largely driven by the Government of India (Baa2 stable), which continues to expect high dividends...

Moody's affirms ONGC's Baa1 ratings; outlook stable - Rating Action – 2019/07/16 – US$ 180.00 – ...MOODY'S CREDIT RATINGS AND MOODY'S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS OR MOODY'S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. CREDIT RATINGS AND MOODY'S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK. All information contained...

Oil and Natural Gas Corporation Ltd.: Update to credit analysis - Credit Opinion – 2019/04/25 – US$ 250.00 – ...Oil and Natural Gas Corporation Ltd.'s (ONGC) Baa1 issuer ratings are primarily driven by its standalone credit profile, as captured in its baa1 Baseline Credit Assessment (BCA). The BCA of baa1 reflects the company's (1) position as the largest integrated oil and gas company in India, with significant production and reserves, and refining and marketing of petroleum products in the country; (2) strong credit metrics; and (3) substantial operating cash flow generation capacity, which can largely fund its planned capital spending and shareholder returns. The rating also incorporates our expectation that ONGC will continue to pursue shareholder- friendly policies such as high dividend payments and share buybacks. These are largely driven by the Government of India (Baa2 stable), which continues to expect high dividends from state-owned oil companies. Although these policies are credit negative for ONGC, they can be accommodated in the company's ratings as its credit quality is supported by...

Oil and Natural Gas Corporation Ltd.: Key Facts and Statistics - FYE March 2018 - Issuer Profile – 2019/01/03 – US$ 200.00 – ...Oil and Natural Gas Corporation Ltd. (ONGC) is India's largest integrated oil and gas company. Its main operations include upstream exploration and production (E&P), where the company recorded a consolidated oil and gas production of 1.29 million barrels of oil equivalent (boe) per day for the fiscal year ended March 2018 (fiscal 2018) and consolidated reserves (1P) of 7.2 billion boe as of 31 March 2018. ONGC accounted for over 70% of the country's crude oil production and approximately 75% of the country's gas production in fiscal 2018. Through its wholly owned subsidiary ONGC Videsh Limited (OVL), ONGC is engaged in 41 E&P projects in 20 countries. Through various joint ventures (JV) and associates, ONGC also conducts downstream activities, including those related to refining, petrochemicals, power generation and marketing of liquefied natural gas (LNG). It holds interests in four refineries, with a total refining capacity of 42.2 million tons per annum (mmtpa) or 847 thousand barrels...

Oil and Natural Gas Corporation Ltd.: Update to credit analysis - Credit Opinion – 2018/10/01 – US$ 250.00 – ...Oil and Natural Gas Corporation Ltd.'s (ONGC) Baa1 issuer ratings are primarily driven by its standalone credit profile as captured in its baa1 Baseline Credit Assessment (BCA). The BCA of baa1 reflects the company's (1) position as the largest integrated oil and gas company in India with significant production and reserves, along with refining and marketing of petroleum products in the country; (2) strong credit metrics despite its acquisition of Government of India's (Baa2 stable) 51.11% stake in Hindustan Petroleum Corporation Ltd. (HPCL, Baa2 stable) in January 2018; and (3) substantial operating cash flow generation capacity, which can fund its planned capital spending. The rating also incorporates our expectation that the government will ask ONGC to share the fuel subsidy burden either through increase in taxes or by asking it to sell crude oil at a discount to downstream companies. Although such a scenario will be credit negative for ONGC, it can be accommodated in the company's...