Three major oil and gas companies-- ONGC, IOCL and Vedanta Resources-- together have around $1.9 billion of rated U.S. dollar bonds maturing next year, rating agency Moody's Investor Services has said.
Capital markets are volatile and investor appetite remains selective, so refinancing risks will remain elevated particularly for high-yield issuers such as Vedanta, which accounts for around 47% of the upcoming bond maturities, it opined in a report on Dec. 1.
Vendanta's $400 million (coupon rate 8%) and another $500 million (7.125%) bonds would mature on April 23 and May 31 next year respectively while ONGC's USD 500 million bonds (3.75%) and IOCL's $500 million bonds (5.75%) would mature on Aug. 1 and May 7 next year respectively, it said.
The rating agency also said the weakening rupee is credit negative for Indian companies that generate revenue in the domestic currency but depend on U.S. dollar debt to fund their operations and also credit negative for companies with dollar-denominated costs but rupee-based revenue.
"However, we expect the negative credit implications to be limited or temporary," Moody's said.
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