Crisil, the country's largest rating agency, has reaffirmed the ratings of Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL).Another rating agency, ICRA has downgraded the long-term rating of the country's largest oil refiner and marketer, Indian Oil Corporation (IOC), on concerns of continuing lack of a transparent and adequate policy mechanism to fix the market prices of petroleum products in line with prevailing high crude oil prices. John Joseph, head of corporate & infrastructure ratings, Crisil,said: "Crisil expects the government of India to support the oil marketingcompanies if they face cash flow problems, given its majority ownership in these companies and their important policy role. The current arrangement of controlled pricing, which impacts the companies adversely, increases the government's moral obligation to support these entities. The sovereign support is central to the ratings of these companies, and hence their credit profiles are sensitive to the adequacy and timing of the government support."
