Fitch Ratings has affirmed Indian Oil Corporation (IOC) Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BBB-'. The outlook is stable. The agency has also affirmed IOC's senior unsecured rating and the ratings on its outstanding senior unsecured debt at 'BBB-'.

Fitch equalises the India-based company's rating with that of its largest shareholder, the state of India (BBB-/Stable), based on Fitch's Government-Related Entities (GRE) Rating Criteria.

We have assessed IOC's standalone profile at 'BB+' to reflect its dominant market position as the largest oil refining and marketing company (OMC) in India, the average-but-improving complexity of its refining assets and a moderate financial profile. High capex requirements are likely to keep free cash flows negative over the next few years.

Shares of the company gained Rs 4.4, or 2.8%, to trade at Rs 161.75. The total volume of shares traded was 318,228 at the BSE (10.18 a.m., Tuesday).