Ratings agency Standard & Poor’s has raised its long-term corporate credit rating for Hungarian oil and gas company MOL from BB to BB+, MOL said in a press release, adding that the outlook for the rating is stable.
"The upgrade primarily reflects our expectations that MOL’s credit metrics will be stronger than we anticipated due to the downstream division’s better performance," S&P said.
S&P sees MOL’s funds from operations (FFO) to debt exceeding 45% on average, and expects the refining business will “generate resilient cash flows,” even assuming a 30% industry-wide decline in refining margins in 2016.
A further upgrade could come on the back of "a pronounced improvement in MOL’s business, particularly on the upstream side," S&P said, noting that a resolution to the conflict with the Croatian authorities over oil concern INA, as well as an increase in the scale of MOL’s upstream business, could result in such an improvement.
Friday, January 6, 2017 - 11:55