28 November 2011 16:10 [Source: ICIS news]
LONDON (ICIS)--Fitch Ratings has affirmed MOL's ratings but has warned that the Hungarian oil, gas and petrochemical group has no rating leeway for major debt-funded acquisitions, the ratings agency said on Monday.
MOL's long-term foreign and local currency Issuer Default Ratings (IDR) were affirmed at BBB- with Stable Outlooks, said Fitch.
“The rating affirmation reflects MOL's improved credit metrics in 2010–2011 in line with the agency's expectations,” it added.
“Following the acquisition of [a major stake in] Croatia's INA in 2008, the company has focused on organic growth, cost reduction and efficiency improvements across the MOL group, in particular at INA,” said Fitch.
However, Fitch cautioned that it felt “MOL has no rating headroom for large debt-funded acquisitions due to a number of negative developments in the external environment”.
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Earlier on Monday,
Fitch added that it continued to regard MOL as a private company because its largest shareholder, the Hungarian state, does not control MOL given the 10% voting cap for all shareholders.
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