S&P lowers MOL Hungarian, debt

Standard & Poor's said it lowered its long-term corporate credit ratings on MOL Hungarian Oil and Gas plc and related entities to BB from BB+.

The ratings were removed from CreditWatch, where they were placed with negative implications on Oct. 11.

The outlook is stable.

In addition, the agency lowered its issue ratings on MOL's senior unsecured debt instruments to BB from BB+ and its issue ratings on the group's junior subordinated debt to B from B+. These ratings were also removed from CreditWatch, where they were placed them with negative implications on Oct. 11.

S&P said the downgrade reflects continued uncertainty relating to the ongoing disagreement between the Croatian government and MOL regarding strategic issues at Croatia-based oil company INA, in which MOL has a 49% stake and management control. Negotiations continue regarding MOL's stake.

S&P said the downgrade reflects its view that the lack of resolution of MOL's disagreement with the Croatian government is negative for MOL's creditworthiness.

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