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Fitch: MOL affirmed at ‘BBB-’ with negative outlook

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Fitch Ratings on Wednesday affirmed Hungarian oil and gas company MOLʼs long-term issuer default rating at ‘BBB-’ with a negative outlook. The negative outlook "reflects pressures on the companyʼs operations from the challenging upstream environment and uncertainties over management rights in its Croatian subsidiary INA", Fitch said.

The outlook also takes into account potential risks associated with acquisitions in the upstream segment which could "bring the leverage metrics above our guidance depending on the size and timing of possible transactions as well as their contribution to EBITDA", it added. Fitch noted that tensions between the Croatian government and MOL over the corporate governance structure of INA "intensified" in 2013, "but so far with limited consequences for the financial profile and operations of both companies".

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