AGR risk for GAIL, OIL, Powergrid stay: Fitch

New Delhi: India's telecom-related regulatory dispute still is event risk for GAIL, OIL and Powergrid, Fitch Ratings said on Wednesday.

Fitch Ratings continues to treat any payments that three India-based companies - GAIL (India) Limited (BBB-/Stable), Oil India Limited (BBB-/Stable) and Power Grid Corporation of India Ltd (BBB-/Stable) - may have to make under a demand notice from the Department of Telecom as an event risk for the companies' ratings.

Fitch is not taking immediate rating action on the three companies, as the Supreme Court of India allowed the companies to withdraw their clarification applications on February 14, 2020, and resolve their dispute with Department of Telecom outside the court. This is in stark contrast to the court's decision to demand immediate payments from the telecom companies that are also involved in the dispute, Fitch added.