Fitch revises OMV to negative

Fitch Ratings said it affirmed OMV AG's long-term foreign-currency issuer default rating at A- and revised the outlook to negative from stable.

Fitch said the outlook revision reflects its view that in 2016-2017 OMV's funds from operations (FFO)-adjusted net leverage will average 2.5 times (end-2015: 2.1 times) and FFO fixed charge cover will be around 6.7 times (end-2015: 9 times), exceeding the negative rating guidance.

The agency views OMV's operational profile to be commensurate with a rating in the high BBB range with oil and gas production of around 300 thousand barrels of oil equivalent per day (kboepd) over the medium-term, lower than earlier expected.

The A- ratings are supported by the conservative financial profile, which although currently stretched due low oil prices, is expected to recover to levels commensurate with the current rating in 2018, Fitch said.

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