Moody’s has upgraded the foreign currency issuer ratings of oil marketing companies (OMCs) to Baa2 from Baa3. In an interview to CNBC-TV18, MK Surana, CMD of Hindustan Petroleum Corporation Ltd (HPCL) spoke about the same.
Right now the company has got foreign exchange borrowing at USD 1.6 billion and has capex plans at around USD 10 billion, he said.
“Definitely, the upgrades may help in reducing our borrowing cost. The expectations are that it may help us to the extent of around 30-50 basis points (bps) on the interest rate,” he added.
On rupee he said that, if rupee continues to strengthen, the crude cost may reduce.