Fitch Ratings has rated Hindustan Petroleum Corporation (HPCL) long-term foreign-currency issuer default rating (IDR) at 'BBB-' with stable outlook.

HPCL's rating is equalised to that of the sovereign (which owns 51% of the company) as it remains strategically important to the state for meeting its socio-economic objectives in relation to the energy sector.

Similar to Indian Oil Corporation (BBB-/Stable) and Bharat Petroleum Corporation (BBB-/Stable), HPCL follows government regulations on fuel pricing and incurs under-recoveries (i.e. difference between market price and selling price) on selling certain fuels below market price. While the government has deregulated prices for petrol and diesel-the biggest drivers of under-recoveries, LPG and kerosene prices are still regulated.

Shares of the company gained Rs 5.65, or 0.78%, to trade at Rs 734.20. The total volume of shares traded was 42,317 at the BSE (1.07 p.m., Wednesday).