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S&P upgrades MOL‘s long-term credit rating to BBB- investment grade with stable outlook
S&P rating confirms MOL’s resilient integrated business model and strong financial profile.
Following previous steps by Fitch and Moody’s, MOL has now become a full investment grade issuer.
MOL Plc. has been upgraded to BBB- investment grade long-term credit and issuer rating with stable outlook by Standard and Poor’s (“S&P”).
S&P concluded that the upgrade to investment grade credit rating was justified by the improvement in MOL’s current and forecasted credit metrics, thanks to the company’s strong performance and supportive industry conditions. S&P added that MOL demonstrated the benefits of its integrated business model, delivered on its cost optimization program with sustainable benefits for profitability and increased the share of less volatile retail and petrochemicals segments. The stable outlook reflects S&P’s expectation that MOL will maintain robust credit metrics, supported by positive free operating cash flow generation, while continuing to invest in its chemicals business.
In March last year, Fitch Ratings revised MOL’s outlook to stable from negative, while affirming its Long-term Issuer Default Rating at BBB- grade. It was followed by Moody’s which assigned Baa3 investment grade rating to MOL in March 2017. With the upgrade of S&P, MOL has now become a full investment grade issuer according to all three major rating agencies.
József Simola, MOL Group Chief Financial Officer commented: "We are delighted by the upgrade of S&P, which means MOL also joins the illustrious club of fully investment grade issuers, yet another reflection of our resilient integrated business model and financial strength. We will continue to deliver strong results on the back of our high-quality, low-cost asset base, while our long-term 2030 strategy will transform MOL into a leading chemicals company and a major consumer and mobility services provider in CEE.”
About MOL Group
MOL Group is an integrated, international oil and gas company, headquartered in Budapest, Hungary. It is active in over 30 countries with a dynamic international workforce of 25,000 people and a track record of more than 100 years in the industry. MOL’s exploration and production activities are supported by more than 75 years’ experience in the hydrocarbon field. At the moment, there are production activities in 8 countries and exploration assets in 13 countries. MOL Group operates four refineries and two petrochemicals plants under integrated supply chain management in Hungary, Slovakia and Croatia, and owns a network of 2,000 service stations across 10 countries in Central & South Eastern Europe.