Moody’s Investors Service has affirmed Indian Oil Corporation Ltd’s (IOCL) Baa2 issuer and senior unsecured ratings.
At the same time, Moody’s has assigned a Baa2 rating to IOCL’s proposed USD- denominated senior unsecured notes.
The ratings outlook is stable.
“The affirmation of IOCL’s ratings reflects our expectation that the company’s leverage will stay within the tolerance level of its ratings, despite negative free cash flow because of high shareholder returns and capital spending,” said Vikas Halan, a Moody’s Senior Vice President.
On 13 December 2018, IOCL announced share buybacks and interim dividends which resulted in a combined total cash outlay of about INR123 billion, and increased its net borrowings by the same amount.
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