Indian oil sector lags behind Chinese counterpart: Fitch
The Indian oil sector has been rated lower than their Chinese counterparts by rating agency Fitch, who saw better infrastructure development and integrated business portfolio in the Communist nation.
By PTI |
NEW DELHI: The Indian oil sector has been rated lower than their Chinese counterparts by rating agency Fitch, who saw better infrastructure development and integrated business portfolio in the Communist nation.
"The relatively better credit quality of the Chinese oil sector reflects China's larger economy, coupled with its more industrialised economic structure, relatively well-developed infrastructure and more integrated business portfolio," Fitch said in its report on 'Oil Sector Comparison: China and India.'
The agency noted that the 'A+' rating signifying 'stable' outlook for the Chinese government was higher than the 'BBB-' rating assigned to India.
"Fitch's rating differentials between the Chinese oil companies and their Indian counterparts reflect the former's fundamental operational strength as well as the Chinese government's stronger ability to provide support," said Pekka Laitinen regional co-head of Fitch's Asia-Pacific Energy and Utilities team.
"Further economic development in India, together with successful business diversification, will be needed in order for the Indian oil sector to achieve a similar credit quality to the Chinese oil sector," he said.
In its report, Fitch said the oil sector in both the countries are similar in may aspects, "both are tightly controlled by their respective governments under similar regulatory environments, resulting in high entry barriers."
"The relatively better credit quality of the Chinese oil sector reflects China's larger economy, coupled with its more industrialised economic structure, relatively well-developed infrastructure and more integrated business portfolio," Fitch said in its report on 'Oil Sector Comparison: China and India.'
The agency noted that the 'A+' rating signifying 'stable' outlook for the Chinese government was higher than the 'BBB-' rating assigned to India.
"Fitch's rating differentials between the Chinese oil companies and their Indian counterparts reflect the former's fundamental operational strength as well as the Chinese government's stronger ability to provide support," said Pekka Laitinen regional co-head of Fitch's Asia-Pacific Energy and Utilities team.
"Further economic development in India, together with successful business diversification, will be needed in order for the Indian oil sector to achieve a similar credit quality to the Chinese oil sector," he said.
In its report, Fitch said the oil sector in both the countries are similar in may aspects, "both are tightly controlled by their respective governments under similar regulatory environments, resulting in high entry barriers."
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