At present, HPCL's standalone credit profile indicates three factors as per Moody's. They are - (1) its strong position as India's third largest stated owned refiner of crude oil and third-largest distributor of petroleum products; (2) the company's exposure to cyclical refining margins, fuel subsidies and high working capital swings that result in volatility in its credit metrics; and (3) low capacity for further deterioration in the company's credit metrics, which have weakened because of high dividend payments and increase capital spending in the last 12 months. Explaining rating mechanism further for HPCL, Moody's stated that an upgrade in the company's issuer rating will require an upgrade of the ratings of both the Indian government as well as ONGC. A rating upgrade will also require an improvement in HPCL's standalone credit quality.