Fitch Affirms Indian Oil's Foreign Currency Rating At 'BBB-', Outlook Stable

Fitch Ratings has affirmed Indian Oil Corp. Ltd.'s long-term foreign currency issuer default rating at 'BBB-' with a stable outlook, and maintained its senior unsecured rating at the same level. The standalone credit profile remains at 'BB+', the agency said.

Fitch expects the oil PSU’s EBITDA net leverage to stay below 3.5x between 2025-26 and 2028-29, supported by falling feedstock and fuel costs. It forecast IOC’s EBITDA at around ₹380 billion in 202-26, with improving refining and marketing margins as Brent crude prices drop to $65 per barrel.

Capital spending is projected at ₹360 billion in 2025-26, rising to ₹375 billion annually thereafter, with the bulk earmarked for refining (42%), marketing (22%), petrochemicals (13%), and the rest going to clean energy, CGD, and R&D, Fitch said.