Moody’s has affirmed the Baa2 long term rating of Gail (India) and changed the outlook to negative from stable. “The change in outlook to negative reflects the rising share of GAIL’s cyclical business segments, especially petrochemicals, which has higher business risk than the core gas transmission business,” says Abhishek Tyagi, vice president and senior analyst at Moody’s . GAIL’s rating could be downgraded if its financial performance does not improve over the next 12 months, or in the absence of countermeasures to offset the elevation of its business risk arising from the substantial growth in its petrochemical capacity, Moody’s said. The Baa2 rating affirmation reflects
GAIL’s dominant position in the gas transmission business, which provides support for the company’s credit profile.