Fitch rates HPCL-Mittal notes BB-

Fitch Ratings said it assigned a long-term issuer default rating of BB to HPCL-Mittal Energy Ltd.

The outlook is stable.

The agency also said it assigned an expected BB- rating to the company's proposed senior unsecured dollar-denominated notes.

Fitch said it assesses the company's standalone credit profile at BB-, reflecting its robust refining operations supported by its highly complex refinery, strong profitability and expectations of high leverage on account of the large capital expenditure plans for its proposed petrochemical expansion.

The issuer default rating of BB benefits from a one-notch uplift for its parent – Hindustan Petroleum Corp. Ltd. – given the moderate linkages, the agency said.

The ratings also benefit from an additional notch uplift in the case of any weakening of its standalone credit profile below the current level of BB-, provided its linkages with HPCL-Mittal Energy remain intact, Fitch said.

The ratings are supported by the company's robust asset quality, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.