The ratings continue to be centrally based on the support and benefits that CPCL derives from its strong linkages with IOC, which holds a 51.89 per cent stake in the company.
A favourable capital structure, moderate debt protection metrics, and strong liquidity are the key factors shaping CPCL's moderate financial risk profile.
The 'Negative' outlook reflects CRISIL's rating outlook on CPCL's parent, IOC.
CPCL was incorporated as Madras Refineries Ltd in 1965 as a joint venture between Government of India (GoI), National Iranian Oil Company (NIOC), and American International Oil Company, a wholly owned subsidiary of Standard Oil Company of the US.
CPCL increased its total refining capacity by 1 million tonnes per annum (mtpa), taking the total refining capacity to 11.5 mtpa, with 10.5 mtpa and 1 mtpa at Manali and Nagapattinam respectively (both in Tamil Nadu).