Fitch rates MOL Hungarian Oil bond BBB-

Fitch Ratings said it assigned MOL Hungarian Oil and Gas Co. plc long-term foreign- and local-currency issuer default ratings of BBB- and short-term foreign- and local-currency issuer default ratings of F3. It also assigned foreign- and local-currency ratings of BBB- to its senior unsecured debt, including its €750 million 2015 bond.

The outlook is stable.

The ratings reflect the company's average business profile for a medium-sized integrated oil and gas company, with a sustainable leading market position in central and southeastern Europe, Fitch said.

The ratings also incorporate the company's increased financial leverage, primarily driven by the acquisition of an additional 22.2% stake in Croatia's Industrija Nafte d.d. Zagreb and the purchase of corporate treasury shares, the agency said, although this is partly mitigated by its prudent financial risk management.

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