Contact Your Financial Adviser Money Making MC
19
September 2016
International
rating agency Fitch Ratings on Monday said Indian Oil Corporation's (IOC)
financial profile would "remain stable" even though the state-run oil
marketing company (OMC) planned to invest Rs 1,700-Rs 1,800 billion over the next
six years. The Total Investment &
Insurance Solutions
The OMC on
Thursday announced that it would invest Rs 1,700-1,800 billion over the next
six years, including around Rs 150 billion in the current fiscal and around Rs
250 billion each in FY18 and FY19. The
Total Investment & Insurance Solutions
"Fitch
has already factored in most of the capex over the next three years, and we see
no significant change to our current expectations as a result of this
announcement. We continue to expect IOC's free cash flow to remain negative
over the medium term, due to the high capex," the rating agency said,
adding that it expected "IOC's financial profile to remain stable due to
strong volume growth and relatively robust refining margins". The Total Investment & Insurance
Solutions
According to
the rating agency, the oil marketing company's credit metrics is likely to
weaken marginally but to remain within levels commensurate with its standalone
profile over the medium term.
Fitch
equalises IOC's ratings with that of its largest shareholder, the Indian state
(BBB-/Stable) due to their strong operational and strategic linkages. The Total Investment & Insurance
Solutions
The agency
has not factored in its investment along with the other state-owned
oil-marketing companies -- Bharat Petroleum Corporation Limited and Hindustan
Petroleum Corporation Limited -- in the proposed refinery project in coastal
Maharashtra.The Total Investment &
Insurance Solutions
No comments:
Post a Comment