Standard & Poors Ratings Services has revised the outlooks on the ratings on the three Indian companies to negative from stable.
The three Indian Companies include-
NTPC Ltd. (BBB-/Negative/--);
NHPC Ltd. (BBB-/Negative--); and
Indian Oil Corp. Ltd. (BB+/Negative/--).
The outlook revisions follow the similar action taken on the sovereign credit ratings on India (BBB-/Negative/A-3). The outlook revision on the sovereign reflects the view that Indias fiscal position has deteriorated to a level that is not sustainable over the medium term.
The outlooks were revised on NTPC, NHPC, and Indian Oil because the ratings are highly influenced by the sovereign rating, given the companies strategic importance to the governments energy policy and the governments considerable influence over these entities.
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