Fitch lifts MOL view to stable

Fitch Ratings said it revised MOL Hungarian Oil and Gas plc’s outlook to stable from negative and affirmed its long-term issuer default rating at BBB-.

The outlook change reflects a view that MOL should be able to maintain a conservative financial profile with leverage within the guidelines despite lower projected oil prices in 2016 and moderating refining margins, Fitch said.

The company’s net debt may increase in 2016, but its free cash flow deficit is likely to be moderate and manageable, unlike that of many other integrated oil players, the agency said.

This is due to expected strong downstream performance, a fairly low share of higher-cost upstream assets in its portfolio and considerable capital expenditure reduction, Fitch said.

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