MUMBAI: Given the continuing upward trend in global crude oil prices should help the national explorer ONGC to maintain its credit profile despite the recent leveraged buyout of Gujarat State Petroleum's oil blocks for USD 1.2 billion, says a report. "Improving oil prices should enable ONGC to maintain adequate, albeit reduced, buffer in its financial ratios, following the acquisition of 80 per cent state in GSPC 's Deen Dayal West gas field," Vishal Kulkarni, an analyst at S&P said in report today. "Nevertheless, we expect ONGC to sustain its financial position in line with its 'A-' stand-alone credit profile. The ratios could have deteriorated below our downgrade threshold but for the improvement in oil prices since late 2016," the report noted. "Continued appetite for acquisitions of USD1 billion or more a year or oil prices falling below USD45 a barrel could strain ONGC's standalone ratings," he said.

Source: Economic Times January 09, 2017 13:54 UTC