Fitch affirms Austria's OMV’s issuer default ratings

24 June 2010 14:15  [Source: ICIS news]

LONDON (ICIS news)--Fitch Ratings has affirmed the long-term foreign currency issuer default rating (IDR) of Austria-based oil, gas and petrochemcial company OMV at 'A-' with a stable outlook,  it said on Thursday.

OMV’s senior unsecured rating has also been affirmed at 'A-', the ratings agency added in a statement.

“The ratings reflect OMV's solid business profile for a medium-sized integrated oil and gas company, with a leading position in the central and south-eastern European exploration & production (E&P) and refining & marketing (R&M) sectors,” it said.

The stable outlook also reflected the cyclicality and capital intensity of OMV's E&P and R&M businesses, it added.

Fitch also said that the disposal of OMV's stake in MOL Hungarian oil and gas company for €1.4bn ($1.7bn) in 2009 helped the group to mitigate the impact of weaker cash flows.

"OMV's ratings have currently limited headroom for large debt-funded acquisitions. Fitch assumes that OMV would raise capital through an equity issue in case of any large scale transactions," Fitch added.

 ($1 = €0.81)

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By: Franco Capaldo
+44 (0)20 8652 3214

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