Standard & Poor’s Global Ratings has affirmed its 'BB+' long-term corporate credit rating on Hungarian oil and gas group Mol and revised the outlook to positive from stable.
We also affirmed our 'BB+' issue rating on MOL's senior unsecured bonds.
The key factors behind the outlook improvement are the following:
Mol improved its credit metrics on the back of higher-than-expected free cash flow generation and strong performance of its downstream business.
S&P expects this trend to continue and now forecasts that Mol’s funds from operations (FFO) to debt will reach about 55% in 2017 and continue to strengthen in 2018.
The rating agency said the positive outlook “reflects the likelihood of an upgrade if MOL's strong performance enables the company to reach the rolling-12-months FFO/debt ratio of about 55%, further improving and maintained at about 60% on average through the cycle."
Mol edged up 0.35% to HUF 21,695 on the Budapest Stock Exchange (BSE) on Thursday.
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