India Ratings & Research (Ind-Ra) has affirmed Indraprastha Gas (IGL) long-term issuer rating at 'AAA' with a stable outlook. The agency has also affirmed the company's proposed Rs 4 billion bond programme at 'AAA(exp)' with a stable outlook. The final rating is contingent upon the receipt of final documents conforming to the information already received.

The ratings continue to reflect IGL's dominant position as the sole city gas distribution (CGD) company in Delhi, Ghaziabad, Noida and Greater Noida along with the infrastructure exclusivity it enjoys in the region. However, during FY14, IGL's volume growth in the compressed natural gas (CNG) segment slowed down considerably at 2.3%.

This was due to the non-addition of new buses to the operating fleet in Delhi and the slower conversion of private vehicles to CNG. However, with the likelihood of new buses addition, the management expects the CNG volume to grow between 5% and 10%.

Shares of the company declined Rs 4.65, or 1.11%, to trade at Rs 415.40. The total volume of shares traded was 6,848 at the BSE (2.04 p.m., Friday).