Fitch rates Hindustan Petroleum BBB-

Fitch Ratings said it published Hindustan Petroleum Corp. Ltd.’s long-term foreign-currency issuer default rating at BBB-.

The outlook is stable.

The company’s rating is equalized with that of the sovereign, which owns 51% of the company, as it remains strategically important to the state for meeting its socio-economic objectives in relation to the energy sector, Fitch said.

The rating reflects government regulations on fuel pricing and the under-recoveries incurred for selling certain fuels below market price, the agency said.

While the government has de-regulated prices for petrol and diesel, LPG and kerosene prices are still regulated, Fitch said.

The company also benefit from subsidy reforms, allowing oil-marketing companies to set rates for diesel based on market factors, the agency said.

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