CRISIL removes BPCL's Rs60,000 crore bank facilities from ‘Watch Developing'; stock up ~1%

8 Jun 2022 , 03:37 PM

Bharat Petroleum Corporation Limited (BPCL) informed that CRISIL Ratings has removed its rating on the long-term bank facilities and non-convertible debentures of the company from the existing ‘Rating Watch with Developing Implications’ while reaffirming the rating at ‘CRISIL AAA’. CRISIL has kept a ‘Stable’ outlook on the long-term bank facilities of the company.

The short-term rating on commercial paper has also been reaffirmed at ‘CRISIL A1+’.

Further, CRISIL Ratings has also withdrawn its rating on the company’s NCDs valued at Rs 550 crore on its successful redemption.

The rating removal is due to the announcement by the Department of Investment and Public Asset Management (DIPAM) that the government of India (GoI) has called off the present expression of interest (EoI) process for strategic divestment of BPCL, stated CRISIL in its rating rationale.

BPCL’s long-term rating was earlier placed on watch on November 29, 2019, post receipt of approval from the Cabinet Committee on Economic Affairs (CCEA) for divesting GoI’s entire shareholding of 52.98% in the company (and management control thereon) to a strategic buyer.

BPCL ended at Rs323.75 up by Rs3.45 or 1.08% from its previous closing of Rs320.30 on the BSE.