Fitch rates HPCL-Mittal Energy loans A+(ind)

Fitch Ratings said it assigned HPCL-Mittal Energy Ltd. a national long-term rating of A+(ind), along with an A+(ind) to its total sanctioned term loans of Rs.77.93 billion.

The outlook is stable.

HMEL is a joint venture between Hindustan Petroleum Corp. Ltd. and Mittal Energy Investment Pte Ltd. for the setting up of a 9 million tons per annum green-field petroleum refinery in the state of Punjab.

The ratings reflect strong sponsor quality, sponsor support agreement by JV partners, sanctioned total project debt of Rs. 77.93 billion, high refinery complexity and satisfactory project progress to date, Fitch said.

The ratings are constrained by high execution risk given a project of this size, complexity and by the operational risk of running a new refinery, the agency said.

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