(BS)
India Ratings and Research (Ind-Ra) has affirmed ONGC Petro Additions Limited’s (OPAL) Long-Term Issuer Rating at ‘IND A+’. The Outlook is Positive. India Ratings and Research (Ind-Ra) has affirmed ONGC Petro Additions Limited’s (OPAL) Long-Term Issuer Rating at ‘IND A+’. The Outlook is Positive.
Plant Commissioning: Ind-Ra has maintained a Positive Outlook on OPAL to reflect the commissioning of OPAL’s greenfield petrochemicals complex in FY17 and the company’s expectations that the operations will be stabilised in FY18. The performance guarantee test runs are underway. Commercial operations at the petrochemical plant’s polypropylene unit were started in June 2015.
Linkages with Sponsors: The affirmation reflects Ind-Ra’s expectation that Oil and Natural Gas Corporation Limited (ONGC) will continue to support OPAL, considering the strong strategic and operational linkages between the two entities. OPAL is a forward integration project for ONGC and is thus strategically important for the latter. ONGC, along with another sponsor GAIL (India) Ltd (‘IND AAA’/Stable), has provided the necessary undertakings to support any cost overruns in the project.
