New Delhi: The government is planning to sell the stake of Bharat Petroleum Corporation ie BPCL, a public sector oil company, to raise funds. Rating agency Moody's has warned the government on this move. Deej said that if the Indian government advances the privatization of BPCL's stake to the private sector, it will reduce the rating of the company to 'BA-1'. BPCL currently has a rating of 'BBB', which is equivalent to a government rating. While the 'BA-1' rating would be similar to the baseline of its current debt estimate, it would mean a lower rating.

Let us tell you that last year the government sold its entire stake in Hindustan Petroleum to ONGC in the public sector. Despite this, Hindustan Petroleum's rating remained 'BBB', as ONGC is under government ownership. The rating agency said that BPCL's credibility would be negative by the sale of the proposed stake. It is known that on September 30, the government has allowed to sell 53.29 percent of its entire stake in BPCL. The stake sale could be completed by 31 March next year. At the same time, Moody's has not considered the reduction in gas prices to be true for ONGC's reputation.

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