Financial Daily from THE HINDU group of publications
Thursday, Feb 02, 2006
Financial Daily from THE HINDU group of publications Thursday, Feb 02, 2006 |
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Money & Banking
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Credit Rating Moody's assigns high credit rating to ONGC Our Bureau
New Delhi , Feb 1 MOODY'S, the globally recognised credit rating agency, has assigned high credit rating to ONGC. According to a company statement, this is the highest ever credit rating to an Indian corporate. Outlook for ONGC's credit rating - Baa1 for indicative foreign currency debt and A2 for local currency issuer - is stable, according to the company statement, which quoted Moody's. Besides being highest ever for any corporate, the ratings are above the sovereign credit rating of India, it said. Moody's released the ratings today in response to ONGC's proposal of October 2005, the company said. While the indicative foreign currency debt rating is two notches higher than the sovereign foreign currency rating for India, the local currency issuer rating is six notches above. The credit ratings would facilitate borrowing in domestic as well as overseas markets to fund the company's growth plans, ONGC said. The overseas opportunities being pursued by the company through its wholly owned subsidiary, ONGC Videsh Ltd (OVL), may require sourcing of substantial funds at short notice, it added. ONGC has also stepped up its domestic investment and further increase is envisaged. "These ratings should help in ensuring on-time availability of the required funds, in rupees or in foreign currency,'' the statement said. The company has appointed Citigroup as rating advisor. It has also approached Crisil and ICRA for domestic credit rating, the reports on which are expected shortly. The rating exercise involved rigorous due diligence by Moody's, covering existing operations as well as future business plans covering ONGC and subsidiaries OVL and MRPL.
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