OREANDA-NEWS. Shares of state-controlled Hindustan Petroleum Corporation Ltd rose nearly 3 per cent on Thursday after India Ratings & Research (Ind-Ra), a part of Fitch Group, has affirmed a long-term issuer rating at 'IND AAA' to the company, with stable outlook, citing that company's strong strategic and operating linkages with the government of India (GoI), its majority stake holder.

The agency has also affirmed HPCL's non-convertible debentures (NCDs) at 'IND AAA'.

"The ratings continue to reflect HPCL's strong strategic and operating linkages with the government of India (GoI), its majority stake holder (51.1 per cent)," the agency said in a statement.

HPCL is among the top three public sector oil refining and marketing companies (OMCs) in India. The agency expects the state to continue to provide support to HPCL, given its role as the government's extended arm for policy implementation.

GoI's policy has been to set tariffs for some refined oil products at levels lower than market prices, leading to under-recoveries. However, GoI has ensured that public sector OMCs' annual under recoveries are compensated through budgetary support and direction to upstream public sector companies to supply feedstock at a discount.

Boosted by development, shares of company gained as much as 2.96 per cent to trade at Rs 546.30 apiece on BSE at 12:10 hours.