Oil and Natural Gas Corporation Ltd.: Update to credit analysis

Oil and Natural Gas Corporation Ltd.: Update following ratings affirmation - Credit Opinion – 2023/10/19 – US$ 250.00 – ...Oil and Natural Gas Corporation Ltd.'s (ONGC) Baa3 issuer rating is primarily driven by its baa3 Baseline Credit Assessment (BCA), which reflects the company's position as the largest integrated oil and gas company in India and its strong credit metrics. That said, the BCA remains constrained by India's sovereign rating because of the links between the company and the government. ONGC's ratings incorporate our assessment of a high likelihood of extraordinary support from and very high dependence on the Government of India (Baa3 stable). However, this assumption does not result in any rating uplift because the sovereign rating is at the same level as ONGC's BCA. Our support assessment reflects ONGC's strategic role in the development of oil and gas reserves in India and the government's strong influence on the company's financial and business policies through its majority ownership....

Moody's affirms ONGC's Baa3 ratings; outlook stable - Rating Action – 2023/10/18 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND 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, ASSESSMENTS, OTHER OPINIONS OR 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. MOODY'S CREDIT RATINGS, 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...

Oil and Natural Gas Corporation Ltd.: Acquisition of additional stake in OPaL will increase leverage, a credit negative - Issuer Comment – 2023/09/11 – US$ 200.00 – ...On 1 September, India's Oil and Natural Gas Corporation Ltd. (ONGC, Baa3 stable) announced it will acquire additional stake in ONGC Petro Additions Limited (OPaL) for around INR150 billion ($1.8 billion). Although the proposed acquisition will be funded through ONGC's existing cash, the company will have to consolidate around INR270 billion of OPaL's borrowings into its balance sheet following the acquisition. In comparison, earnings contribution from OPaL remains minimal given its EBITDA of just around INR5 billion for the fiscal 2023 (ended 31 March 2023). Consequently, ONGC's credit metrics will weaken following the acquisition, a credit negative. Notwithstanding, the proposed acquisition remains in line with ONGC's strategic objectives of increasing its petrochemical capacity to eight million tons per annum (mtpa) from around four mtpa currently, as well as increasing its downstream integration within the oil and gas value chain. Of the total consideration that ONGC will pay for the...

Oil and Natural Gas Corporation Ltd.: Update to credit analysis - Credit Opinion – 2023/08/04 – US$ 250.00 – ...Oil and Natural Gas Corporation Ltd.'s (ONGC) Baa3 issuer rating is primarily driven by its baa3 Baseline Credit Assessment (BCA), which reflects the company's position as the largest integrated oil and gas company in India and its strong credit metrics. ONGC's BCA is constrained by India's sovereign rating because of the links between the company and the government. We assume ONGC has a high likelihood of extraordinary support from and very high dependence on the Government of India (Baa3 stable). However, this assumption does not result in any rating uplift because the sovereign rating is at the same level as ONGC's BCA. Our support assessment reflects ONGC's strategic role in the development of oil and gas reserves in India and the government's strong influence on the company's financial and business policies through its majority ownership. ONGC's rating is based on the full consolidation of its 54.9%-owned subsidiary Hindustan Petroleum Corporation Ltd. (HPCL, Baa3 stable), which also...

Oil and Natural Gas Corporation Ltd.: Update to credit analysis - Credit Opinion – 2022/07/21 – US$ 250.00 – ...Oil and Natural Gas Corporation Ltd.'s (ONGC) Baa3 local- and foreign-currency issuer rating is primarily driven by its baa3 Baseline Credit Assessment (BCA), which reflects the company's position as the largest integrated oil and gas company in India. ONGC's BCA is constrained by India's sovereign rating because of the linkages between the company and the government. We assume ONGC has a high likelihood of extraordinary support from and very high dependence on the Government of India (Baa3 stable). However, this assumption does not result in any rating uplift because the sovereign rating is at the same level as ONGC's BCA. Our support assessment reflects ONGC's strategic role in the development of oil and gas reserves in India and the government's strong influence on the company's financial and business policies through its majority ownership. ONGC's rating is based on the full consolidation of its 54.9%-owned subsidiary Hindustan Petroleum Corporation Limited (HPCL, Baa3 stable), which...

Oil and Natural Gas Corporation Ltd.: Update following change in outlook to stable - Credit Opinion – 2021/10/20 – US$ 250.00 – ...Oil and Natural Gas Corporation Ltd.'s (ONGC) Baa3 local and foreign-currency issuer rating is primarily driven by its baa3 Baseline Credit Assessment (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. ONGC's final rating also reflects our view that its BCA is constrained by India's sovereign rating because of the current links between the company and the government. We assume ONGC has a high likelihood of extraordinary support from and very high dependence on the Government of India (Baa3 stable). However, this assumption does not result in any rating uplift because the sovereign rating is at the same level as ONGC's BCA. Our support assessment reflects ONGC's position as the country's largest integrated oil and gas company, its strategic role in the development of oil and gas reserves in India, and the government's strong influence on the company's financial...

Oil and Natural Gas Corporation Ltd.: Update to credit analysis - Credit Opinion – 2021/01/15 – US$ 250.00 – ...Oil and Natural Gas Corporation Ltd.'s (ONGC) Baa3 local- and foreign-currency issuer rating is primarily driven by its baa3 Baseline Credit Assessment (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 ONGC has a high likelihood of extraordinary support from and very high dependence on the Government of India (Baa3 negative). However, this assumption does not result in any rating uplift because the sovereign rating is at the same level as ONGC's BCA. Our support assessment reflects ONGC's position as the country's largest integrated oil and gas company, its strategic role in the development of oil and gas reserves in India, and the government's strong influence on the company's financial and business policies through its majority ownership. ONGC's final rating also reflects our view that its BCA is constrained by India's sovereign rating because of the...

Oil and Natural Gas Corporation Ltd.: Improving oil prices support earnings growth, but full recovery will take longer - Issuer Comment – 2020/11/17 – US$ 200.00 – ...On 13 November, Oil and Natural Gas Corporation Ltd. (ONGC, Baa3 negative) reported a 76% increase in its consolidated EBITDA for the quarter ended 30 September 2020 compared with the preceding quarter. The increase in EBITDA was attributable to the recovery in crude oil prices during the quarter from the low levels seen earlier in 2020. Increase in earnings is credit positive and in line with our expectation. However, EBITDA for the first half ended 30 September 2020 (excluding earnings from HPCL- Mittal Energy Limited, Ba2 negative) was still around 30% lower than same period last year....

Oil and Natural Gas Corporation Ltd.: Impairment loss and low crude oil price weakens fiscal 2020 earnings - Issuer Comment – 2020/07/03 – US$ 200.00 – ...MMBTU: Million British Thermal Units Sources: Ministry of Petroleum and Natural Gas and Government of India...