ONGC share price: Reliance, ONGC’s credit quality can bear unexpected tax, says Moody’s


Billionaire Mukesh Ambani. India’s decision to impose additional taxes on local fuel exports and oil production is unlikely to cause a “material” dent to its credit quality to Oil and Natural Gas Corp., Moody’s said.

Moody’s analyst Hui Ting wrote, “While profits from oil exports will decline due to unexpected taxes, they are likely to remain above levels from April 2020 to March 2022, if refining margins are seen in April to June of this year.” remains at a high level.” Sim in one note. “Higher crude oil prices will support oil producers’ earnings.”

India’s move to impose levies on energy firms from early July to reap windfall gains from high oil prices hit stock prices of both

And for Friday to fall and widen for the spread on their dollar bonds. Spreads on some of those notes have stabilized or tightened as investors assess the impact of government tariffs.

According to the rating company’s note, Moody’s expects the government’s measures to be temporary and taxes will eventually be adjusted. The taxes are intended to help India increase revenue as the government faces challenges in managing its fiscal deficit after joining a growing group of countries to introduce such levies.


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