In a press reales issued here, S&P said: "The outlook for the foreign currency rating is stable. The foreign currency creditworthiness of IOC is modestly constrained by the foreign currency transfer risk of the Republic of India. The ratings on IOC reflect the company's leading domestic market position in the distribution and refining of petroleum products in India, a supportive although deregulating pricing regime, and key involvement and direct 82 per cent ownership by the Indian Goverment".

S&P is of the veiw of that planned capital on the company's greenfield refinery project at Paradip in eastern India, enviromental standards upgrades and numerous expansion and efficiency projects appear manageable.

This is seen increasing only moderately the total debt-to-capital ratio from 51 per cent in fiscal 2000.

IOC has a record of consistent earnings and returns supported by the regulatory pricing enviroment, including a stipulated 12 per cent post-tax rate of return on capital employed volatility and risks for management. The company has a 55 per cent market share of total petroleum product sales, supported by more thtn 20,000 company-owned and independent point-of-sale outlets. It also has a 32 per cent or so market share share of India's total oil refining capacity, and ownership of the majority of countries petroleum pipelines.

In September this year, the Centre decided to sell its 53.8 per cent shareholding in Chennai Petroleum Corporation Ltd, which owns a refining facility in southern India and its 74.5 per cent shareholding in Bongaigaon refinery and Petrolium Ltd to IOC further strenthening IOC market position.