Moody's Investor Service has downgraded the long-term issuer ratings of oil marketing companies (OMCs) including Oil and Natural Gas Corporation (ONGC), Hindustan Petroleum Corporation Limited (HPCL), Oil India Limited (OIL), Indian Oil Corporation Limited (IOCL) and Bharat Petroleum Corporation Limited (BPCL). The outlooks on these ratings are negative, the agency said on Tuesday.
On Monday, Moody's downgraded India's sovereign rating for the first time in 22 years by a notch to 'Baa3', which is the lowest investment grade, just a notch above junk status. The rapid and widening spread of the coronavirus outbreak, deteriorating global economic outlook, volatile oil prices and asset price declines are creating a severe and extensive credit shock across many sectors, regions and markets, said Moody's.
"In accordance with the Regulation 30 read with Part A of Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, it is hereby notified that Credit Rating agency Moody's has revised the credit rating of Indian Oil's debt instrument viz. "Senior unsecured debt-foreign currency from "Baa2" to "Baa3"," IOCL said in a regulatory filing on Wednesday.
"Moody's Investor Service, an international credit rating agency for our Foreign Currency (USD) denominated notes, has vide its press release dated 2nd June 2020, revised the foreign currency issuer and senior unsecured debt rating of Hindustan Petroleum Corporation Limited to "Baa3" with Negative Outlook," HPCL said.
Meanwhile, Moody's also downgraded ratings of eight non-financial companies, including Infosys, TCS, ONGC, and 11 banks, including SBI, HDFC Bank and EXIM. It also downgraded seven Indian infrastructure issuers, including NTPC, NHAI, GAIL and Adani Green Energy Restricted Group, by one notch. Issuer ratings of IRFC and HUDCO have also been lowered.
With regard to ratings of banks, Moody's has downgraded the long-term local and foreign currency deposit ratings of HDFC Bank and SBI to Baa3 from Baa2, and the long-term issuer rating of EXIM India to Baa3 from Baa2, with negative outlook.
Moody's has placed the Baa3 long-term local and foreign currency deposit ratings of Bank of Baroda, Bank of India, Canara Bank and Union Bank of India and their BCAs under review for downgrade. The agency has downgraded IndusInd's long-term local and foreign currency deposit ratings, with a negative outlook.