Fitch Revises Indias Outlook to Negative; Affirms at BBB-
It is a package deal !
Fitch Ratings has revised the Outlooks on the Long-Term (LT) Issuer Default Ratings (IDRs) of seven Indian state-owned enterprises (SOEs) to Negative from Stable and affirmed the ratings.
The Outlook revision follows Fitch's revision of the Outlook on India's LT Foreign- and Local-Currency IDRs to Negative from Stable (please see rating action commentary dated 18 June 2012). This is because the IDRs of Fitch-rated seven SOEs are either equated to the sovereign's or their stand-alone credit profiles are currently at, or constrained by, the sovereign's IDRs as per Fitch's Parent and Subsidiary Rating Linkage methodology.
The ratings of Rural Electrification Corporation Limited (REC), Power Finance Corporation Limited (PFC), GAIL India Limited (GAIL) and Indian Oil Corporation Limited (IOC) are equalised with those of the sovereign. The ratings of NTPC Limited (NTPC), NHPC Limited (NHPC) and Steel Authority of India Limited (SAIL) are assessed on a bottom-up basis.
A full list of ratings is provided below:
REC: Long-Term Foreign- and Local-Currency IDRs and senior unsecured rating affirmed at 'BBB-'; Outlook on the IDRs revised to Negative from Stable
PFC: Long-Term Foreign-Currency IDR and senior unsecured rating affirmed at 'BBB-'; Outlook on the IDR revised to Negative from Stable
GAIL: Long-Term Foreign-Currency IDR affirmed at 'BBB-'; Outlook revised to Negative from Stable
IOC: Long-Term Foreign-Currency IDR and senior unsecured rating affirmed at 'BBB-'; Outlook on the IDR revised to Negative from Stable
NTPC: Long-Term Foreign-Currency IDR and senior unsecured rating affirmed at 'BBB-'; Outlook on the IDR revised to Negative from Stable
NHPC: Long-Term Foreign- and Local-Currency IDRs affirmed at 'BBB-'; Outlook revised to Negative from Stable
SAIL: Long-Term Foreign-Currency IDR affirmed at 'BBB-'; Outlook revised to Negative from Stable