“Fitch expects the capex of OMCs to remain high in the Also Read - HDFC Slashes Home Loan Interest Rates, Changes to be Applicable From Today. Check Details Here
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“Fitch expects the capex of OMCs to remain high in the
medium term, given their investment requirements to improve capacity and meet new fuel quality standards,” it said.
Stating that RIL is emerging from a phase marked by substantial investments in refining, petrochemicals and telecommunications; Fitch expected further substantial investments in its telecoms venture, led by its new mobile- service operations launched in September 2016.
“However, overseas upstream investments are likely to be more selective than in 2016. We expect the credit metrics of these entities to remain in line with their current standalone profiles,” it said.
State-owned oil marketing companies (OMCs) – Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (BPCL) – have announced large investments to improve capacity and refining complexity to meet new fuel standards.
“Any changes to India s ratings will affect these issuers’ rating. Their standalone credit profiles may be affected by any significant increases in investments than we had expected, oil-price shocks or from adverse regulatory developments,” Fitch added. PTI ANZ
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