New Delhi [India], June 24 (ANI): Fitch Ratings has affirmed Indian Oil Corporation's Long-Term Foreign-Currency Issuer Default Rating at BBB minus with a Stable outlook, equalising it with the sovereign rating of India.The rating agency expects IOC's EBITDA to fall 50 to 60 percent in fiscal 2027 due to the Iran conflict and higher input costs, before rebounding 20 to 30 percent in fiscal 2028 as refining margi
Fitch Ratings Affirms Indian Oil Corporation's Rating Amid Iran Conflict Impact on Earnings
Fitch Ratings has maintained a stable outlook for Indian Oil Corporation (IOC) despite anticipated earnings declines due to the Iran conflict and rising input costs. The agency projects a significant drop in IOC's EBITDA for fiscal 2027, followed by a recovery in fiscal 2028. This situation reflects the broader impact of geopolitical tensions on energy markets and Indian companies.
👥 Key Players
📰 What Happened
Fitch Ratings has affirmed the credit rating of Indian Oil Corporation despite expected significant earnings declines due to the ongoing conflict in Iran and rising input costs. The agency anticipates a recovery in IOC's earnings in the following fiscal year after a sharp drop.
- Fitch projects IOC's EBITDA to fall by 50-60% in fiscal 2027.
- A recovery of 20-30% in EBITDA is expected in fiscal 2028.
💡 Why It Matters
📚 Background
The Iranian conflict has significant repercussions on global oil supply, affecting countries like India that depend heavily on oil imports. The fluctuations in oil prices can lead to economic instability in importing nations.
🏷️ Entities Mentioned
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