India Ratings and Research has affirmed Oil and Natural Gas Corporation Limited’s (ONGC) credit ratings. The rating for bank loan facilities, proposed commercial papers, and non-convertible debentures remains ‘IND AAA’/Stable and ‘IND A1+’, respectively. This affirmation highlights ONGC’s strong financial position and its strategic importance to the Indian government.
ONGC’s Credit Ratings Affirmed by India Ratings
India Ratings and Research (Ind-Ra) has affirmed the credit ratings for Oil and Natural Gas Corporation Limited’s (ONGC) debt instruments. The affirmation covers bank loan facilities, proposed commercial papers, and non-convertible debentures, maintaining ONGC’s strong credit profile.
Key Ratings and Instruments
The rating for Bank loan Facilities is maintained at ‘IND AAA’/Stable with an outlook of ‘IND A1+’. Similarly, Proposed commercial papers also retain their ‘IND A1+’ rating. The Non-convertible debentures are affirmed with a rating of ‘IND AAA’/Stable. These ratings reflect the company’s robust financial health and operational stability.
Rationale Behind the Affirmation
The affirmation is driven by ONGC’s strong linkages with the Government of India (Gol), its dominant market position in the domestic crude oil and natural gas production, and its globally competitive cost structure. The company’s subsidiaries and associates also contribute to its strong consolidated financial profile. ONGC’s healthy financial position, characterized by moderate gearing and significant liquid investments, provides further comfort. The report highlights that the ratings are susceptible to inherent risks in the exploration and production business, regulatory changes, and geopolitical factors.
Financial Highlights
The report indicates that ONGC’s consolidated EBITDA was INR730 billion in FY26, and its consolidated debt stood at INR1,176 billion. The company’s standalone liquidity is considered superior, supported by sanctioned fund-based working capital limits and substantial cash balances.
Source: BSE
