Moody's Investors Service on Thursday said if a non-government firm takes over the entire government stake in BPCL, it would likely downgrade the state-run oil marketing company by two notches to Ba1, which denotes medium-grade and is subject to moderate credit risk. Whether BPCL is to be privatised or sold to another PSU, the proposed stake sale of 53.29% government stake in the company will prompt bond redemption and attendant refinancing risks, the rating agency added. Currently, the agency's rating for BPCL is Baa2 and this takes into consideration "the high likelihood of extraordinary support from the government" that corresponds to two notches of uplift in the rating. "If the stake is sold to another government-owned company such that the government continues to appoint all of BPCL's board of directors and have substantial control over its operations, we will continue to include support in BPCL's ratings," the rating agency said.