India Ratings & Research (Ind-Ra) has assigned GAIL (India) long-term issuer rating of 'AAA'. The outlook is stable.

The rating reflects GAIL's position as India's largest natural gas (NG) company and the dominant position occupied by public sector companies in the Indian petroleum and NG industry. GAIL has a strong business profile with its widespread NG transmission network accounting for about 75% of the total NG transmitted though pipelines in India. The company also accounts for more than 50% of the NG sold in India.

GAIL's capex for enhancing its capacity at its petrochemical plant in Pata is in the final stages and likely to be completed in 2014. The company has also undertaken significant investments in the petrochemical business through its subsidiary Brahmaputra Cracker and Polymer Limited and JV ONGC Petro Additions (A+/ stable).

GAIL is also actively pursuing opportunities in the city gas distribution sector through subsidiaries and JVs and exploration and production blocks. Hydrocarbon discoveries have so far been made in five blocks, including two overseas blocks.

Shares of the company declined Rs 5.05, or 1.45%, to settle at Rs 344.40. The total volume of shares traded was 21,616 at the BSE (3.40 p.m., Tuesday).