Moody’s: HPCL-Mittal Ba1, bonds Ba2

Moody's Investors Service said it assigned a Ba1 corporate family rating to HPCL-Mittal Energy Ltd. (HMEL) and a Ba2 rating to its proposed dollar-senior unsecured bonds.

Bond proceeds will be used to refinance existing debt.

The outlook is stable.

Moody’s said the Ba1 corporate family rating incorporates a two-notch uplift from the issuer rating for its 49% shareholder and a key offtaker, Hindustan Petroleum Corp. Ltd. (HPCL, Baa3 positive).

"The two-notch uplift is based on HMEL's strategic importance to HPCL, as well as HPCL's management oversight and track record of providing financial and operational assistance to HMEL," Moody's vice president and senior credit officer Vikas Halan said in a news release.

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