Fitch revises HPCL-Mittal view to negative

Fitch Ratings said it revised the outlook on HPCL-Mittal Energy Ltd. to negative from stable and affirmed the long-term issuer default rating at BB.

The agency also affirmed the ratings on the company’s $375 million of 5¼% senior unsecured notes due 2027, and $300 million of 5.45% senior unsecured notes due 2026 at BB-.

“The negative outlook reflects the risk of potential weakening in the standalone credit profile (SCP) of HMEL’s parent, Hindustan Petroleum Corp. Ltd. (HPCL, BBB-/stable), of bb due to prolonged weakness in demand and refining margins beyond Fitch’s current expectations. Demand for petroleum products has fallen sharply since the onset of the coronavirus pandemic in March 2020, leading to lower refining utilization rates and margins,” Fitch said in a press release.

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