Fitch Ratings affirmed Oil and Natural Gas Corporation's (NSE:ONGC, BSE:500312) long-term foreign-currency issuer default rating at BBB- with a stable outlook.

The agency also raised the company's standalone credit profile to bbb+ from bbb.

Fitch said the upgrade reflects its expectation that ONGC's EBITDA net leverage will remain well below 2.0x despite higher capital expenditure.

It expects stable EBITDA from the company's vertically integrated operations and production, with production stabilizing as crude oil prices remain elevated.

The ratings agency expects ONGC's annual capital expenditure to increase to about 675 billion rupees from fiscal 2027 to 2029, up from 540 billion rupees in fiscal 2026.

Fitch said ONGC's overall rating remains constrained by India's sovereign rating because of the government's majority ownership and the company's strategic role in the country's energy security.