ICRA withdraws long term rating of NCDs of ONGC

The strong credit ratings are perceived rather by some of the influencing factors occurring through the company domain.

ICRA withdraws long term rating of NCDs of ONGC

The rating agency ICRA Limited has withdrawn the long-term rating of [ICRA] AAA (Stable) assigned to Rs. 2,640 Crore Non-Convertible Debentures (NCDs) of Oil and Natural Gas Corporation Limited (ONGC), per ICRA’s policy on withdrawal of Credit rating, as these NCDs have been redeemed and no amount is outstanding against the said instruments.

The strong credit ratings are perceived by some influencing factors occurring through the company domain- The dominant market position of ONGC in domestic crude oil and natural gas production business with large proven reserves.


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Access to significant E&P infrastructure; competitive cost structure as reflected in low finding and development (F&D) costs.

Strong financial position – The company's financial position remains strong owing to its robust profitability (operating profit margin) of 11.03% in FY 2023.

Stable performance of overseas subsidiary, ONGC Videsh Ltd (OVL)– Over the years, OVL has been acquiring participating interests in overseas oil and gas assets and participates either directly or through wholly-owned subsidiaries/joint venture companies in 32 projects in 15 countries.

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The Stable outlook on the rating reflects ICRA’s opinion of ONGC’s dominant position in the domestic exploration market and expectations that the Maharatna PSU will continue to maintain a healthy financial risk profile owing to its status as the largest oil producer in the country.

Maharatna ONGC is the largest crude oil and natural gas company in India, contributing around 68.2 percent to Indian domestic production. It is also a significant producer of value-added products, such as liquefied petroleum gas (LPG), superior kerosene oil (SKO), and naphtha. The GoI is the majority shareholder in ONGC, with a 58.89% equity stake as of December 30, 2023. ONGC set up OVL in 1965 as its fully-owned overseas E&P arm.

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