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Moody’s Reaffirms Oil India’s Baa3 Rating with Stable Outlook


Updated: June 27, 2025 14:16

Image Source : ET EnergyWorld
Moody’s Investors Service has affirmed the Baa3 long-term issuer rating for Oil India Ltd, maintaining a stable outlook, reflecting the company’s strong credit profile, sovereign backing, and consistent operational performance.
 
Rating Affirmation Summary
 
* Moody’s has affirmed Oil India’s Baa3 long-term issuer rating
* The outlook on the rating remains stable, indicating limited risk of downgrade in the near term
* The rating reflects Oil India’s solid financial metrics, low leverage, and state ownership
 
Key Rating Drivers
 
* Strong support from the Government of India, which owns a majority stake in Oil India
* Stable cash flows from upstream oil and gas operations despite market volatility
* Conservative financial policies and healthy liquidity position
* Significant role in India’s energy security and strategic infrastructure
 
Outlook Explanation
 
* Stable outlook reflects expectations of continued government backing and steady credit metrics
* Moody’s does not anticipate major adverse changes in Oil India’s financial or operational performance
* Resilient earnings profile supports current rating level even in low price scenarios
 
Implications For Investors
 
* Affirmation of investment-grade rating supports Oil India’s access to low-cost global financing
* Stable rating outlook provides confidence to long-term bondholders and institutional investors
* Reinforces Oil India’s position as a dependable public sector energy entity
 
About Oil India Ltd
Oil India Ltd is a leading Indian public sector oil and gas exploration and production company, engaged in upstream operations and playing a vital role in the country’s energy landscape.
 
Sources: Moody’s Ratings Report, Company Filings, Exchange Announcements

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