ICRA upgrades rating on IOC bonds
Mumbai   30-Jun-2010

ICRA has upgraded the long-term rating on outstanding Rs 4,589 crore long-term bonds programme of IndianOil (IOC) from LAA+ and 'positive outlook' to LAAA. The upgrade in the long-term rating of IOC follows the recent decision of the government of India to grant autonomy to the PSU oil marketing companies to revise petrol prices, and possible autonomy in revising diesel prices in the near term. The rating upgrade also considers price hikes announced by the government on four sensitive petroleum products - petrol, diesel, LPG (domestic) and SKO (PDS), which will reduce the gross under recovery burden for the PSU OMCs and improve their liquidity position, a media release said.