Fitch revises outlook of 7 PSUs to stable from negative

New Delhi: Global rating agency Fitch today revised its outlook on Issuer Default Ratings of seven state-owned firms, including GAIL, IOC and NTPC, to stable from negative.

Fitch Ratings has revised the Outlooks on the Long-Term (LT) Issuer Default Ratings (IDRs) of seven Indian state-owned enterprises (SOEs) – GAIL, IOC, BPCL, PGCIL, NTPC, NHPC and SAIL – " to Stable from Negative and affirmed the ratings".

The outlook change follows Fitch’s revision of the outlook on India’s long term foreign and local currency IDRs to stable from negative.

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“This is because the IDRs of these seven SOEs are either aligned with the sovereign’s or their stand-alone credit profiles are currently at, or constrained by, the sovereign’s IDRs as per Fitch’s Parent and Subsidiary Rating Linkage (PSL) methodology,” it said.

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Referring to key rating drivers, Fitch said the ratings of IOC and BPCL are equalised with those of the sovereign; their standalone profiles are weaker than their ‘BBB-’ ratings.

The stand-alone ratings PGCIL, NTPC, NHPC, GAIL India and SAIL are currently assessed at or higher than India’s IDR of ‘BBB-’; hence their IDRs are at or constrained by the sovereign’s ratings.

PTI