S&P upgrades MOL credit rating

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.

Last update: Fri, 22/07/2016 - 12:04
Author: 

View the discussion thread.

More from Croatia

Marques: Croatia, Portugal have excellent political relations, should improve trade

Croatia and Portugal have excellent political and diplomatic relations but more needs to be done to advance trade,...

NATO strongly supports Ukraine's integrity, says Croatian FM

NATO strongly supports Ukraine's territorial integrity and the European Union's sanctions against Russia will remain...

BAT factory in Kanfanar exports to 19 markets

British American Tobacco (BAT) is satisfied with the results achieved in its first year of doing business in Croatia...

SSSH against proposed foreign workers' quota in Croatia in 2017

The SSSH trade union on Wednesday raised its voice against the proposed quota of work permits for foreigners in 2017...

Florian Croatia plans to invest EUR 39mn in timber industry in 2017

Florian Croatia, a member of the Italian Florian Gorup specialising in manufacturing interior and exterior floors...