Oil and Natural Gas Corporation Limited (NSE:ONGC) disclosed to the stock exchanges on 16 July 2026 that Fitch Ratings has affirmed its Long Term Foreign Currency Issuer Default Rating at 'BBB-' with a Stable outlook, while simultaneously raising the company's Standalone Credit Profile from the prior level to 'bbb+'. The disclosure was filed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, by Company Secretary and Compliance Officer Shashi Bhushan Singh.
Key Highlights
- Fitch Ratings has affirmed ONGC's Long Term Foreign Currency Issuer Default Rating at 'BBB-' with a Stable outlook, as disclosed in the 16 July 2026 exchange filing.
- Fitch has raised ONGC's Standalone Credit Profile to 'bbb+', reflecting an improvement in the agency's assessment of the company's intrinsic financial strength independent of sovereign support.
- Moody's Investors Service continues to rate ONGC's international bonds at 'Baa3' for both foreign and local currency, with a Stable outlook, as per the enclosed rating details.
- S&P Global Ratings maintains a Long Term Issue Rating of 'BBB' with a Stable outlook on ONGC's senior unsecured international bonds.
- ONGC's Commercial Paper programme of up to Rs. 10,000 crore outstanding at any point in time carries the highest short-term domestic ratings: CARE A1+ from CARE Ratings and IND A1+ from India Ratings and Research.
- Non-Convertible Debentures totalling Rs. 17,000 crore (Rs. 8,500 crore rated by ICRA, Rs. 7,500 crore by CARE Ratings, and Rs. 1,000 crore by India Ratings) carry AAA ratings with Stable outlooks from their respective agencies.
- The filing was made pursuant to Regulation 30 of SEBI LODR Regulations 2015, confirming timely compliance with continuous disclosure requirements.
About the Company
Oil and Natural Gas Corporation Limited (NSE:ONGC, BSE:500312) is India's largest crude oil and natural gas producer, incorporated in 1993 and headquartered at Vasant Kunj, New Delhi. The company explores, develops, and produces hydrocarbons across onshore and offshore basins in India, including the Mumbai High, Krishna-Godavari Basin, and Cauvery Basin, as well as international acreages through its subsidiary ONGC Videsh Limited. ONGC also holds a majority stake in Hindustan Petroleum Corporation Limited (HPCL) and operates the Mangalore Refinery and Petrochemicals Limited (MRPL). The company is listed on both BSE and NSE and is classified under the Energy and Oil sector.
Announcement in Detail
In a filing dated 16 July 2026, ONGC informed BSE Limited and the National Stock Exchange of India that Fitch Ratings has affirmed its Long Term Foreign Currency Issuer Default Rating at 'BBB-' with a Stable outlook. More notably, Fitch has raised the company's Standalone Credit Profile to 'bbb+'. The Standalone Credit Profile is a measure used by Fitch to express the intrinsic creditworthiness of an entity before any uplift from parent or sovereign support. A rise in SCP to 'bbb+' indicates that Fitch now views ONGC's own financial and operational profile more favourably than before, independent of government ownership.
The enclosed rating details in the filing set out a comprehensive picture of ONGC's current credit standing across multiple instruments and agencies. For its international bonds, comprising senior unsecured notes issued by the company and subsidiaries guaranteed by ONGC, Moody's Investors Service assigns 'Baa3' for both foreign and local currency with a Stable outlook, while S&P Global Ratings assigns a Long Term Issue Rating of 'BBB' with a Stable outlook. All three global agencies therefore place ONGC at the lower end of the investment-grade spectrum, consistent with India's own sovereign rating position.
On the domestic instruments front, ONGC's Commercial Paper programme of up to Rs. 10,000 crore outstanding at any point in time is rated at the highest short-term category by both CARE Ratings Limited (CARE A1+) and India Ratings and Research Private Limited (IND A1+). The company's Non-Convertible Debentures, covering a combined Rs. 17,000 crore across three tranches, are rated AAA with Stable outlooks by ICRA Limited, CARE Ratings Limited, and India Ratings and Research, respectively, indicating the strongest domestic long-term credit quality.
Impact on Investors
Investors will note that the affirmation of the 'BBB-'/Stable rating by Fitch, combined with the upgrade in Standalone Credit Profile to 'bbb+', suggests that Fitch's assessment of ONGC's intrinsic financial position has improved. The SCP upgrade is a meaningful signal because it measures creditworthiness without the benefit of government support; a higher SCP indicates the company is assessed as financially stronger on a standalone basis. Shareholders will observe that the overall issuer rating remains at 'BBB-', which is investment grade, and the Stable outlook implies that Fitch does not currently anticipate a change in the rating in the near term. The retention of top-tier domestic ratings (AAA and A1+) across multiple agencies and instruments further indicates no deterioration in ONGC's domestic credit standing.
For bondholders and institutional investors holding ONGC's Non-Convertible Debentures or international bonds, the filing shows that all existing ratings remain at investment grade or the equivalent highest domestic categories. The disclosed terms indicate that the Rs. 17,000 crore NCD programme continues to carry AAA ratings, which is relevant for funds and insurance companies with investment mandates requiring minimum credit thresholds. The filing does not indicate any change in coupon, maturity, or covenant terms for existing instruments. No dilution of equity is associated with this announcement.
Sector / Market Context
India's upstream oil and gas sector operates under a framework where national oil companies play a central role in domestic hydrocarbon production. ONGC accounts for a substantial share of India's domestic crude oil and natural gas output, according to data from the Ministry of Petroleum and Natural Gas. The company's credit ratings are closely watched by global bond markets given its regular issuance of international senior unsecured notes, often benchmarked against sovereign ratings. SEBI's LODR Regulation 30 requires listed entities to disclose credit rating revisions promptly, ensuring transparency for all market participants.
Globally, Fitch's rating action on ONGC comes in the context of rating agencies periodically reviewing national oil companies against sovereign ceilings and standalone operational metrics. The distinction between an issuer rating and a standalone credit profile has become increasingly significant for investors seeking to differentiate between sovereign-supported and independently strong issuers. The maintenance of investment-grade ratings by all three global agencies, Moody's, S&P, and Fitch, is broadly consistent with ONGC's status as a government-owned enterprise with established access to domestic and international debt capital markets.