Fitch: Oil India notes BBB-

Fitch Ratings said it assigned an expected rating of BBB- to Oil India Ltd.'s proposed U.S. dollar notes.

The notes are rated at the same level as Oil India's issuer default rating of BBB- as they will constitute direct, unconditional, unsubordinated and unsecured obligations of the company, Fitch said.

The agency said it assessed the linkages between Oil India and its 67.6% owner, the Indian sovereign, to be strong, especially its strategic and operational linkages. Oil India's standalone rating is, therefore, the same as the sovereign's rating, the agency said.

The ratings benefit from Oil India's low cost ratios, especially its very low finding and development costs of $5.4 per barrel, the agency said.

The ratings also consider the concentration of its current reserves and production in northeastern Assam state, Fitch said.

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