S&P affirmed its 'BBB-' long-term corporate credit rating on MOL on Tuesday and removed it from CreditWatch with negative implications, where it had been placed on April 28 following MOL's aggressive bid for Udmurtneft.
Our view:
S&P kept MOL on watchlist even after it lost the Udmurtneft tender, seeinga growing risk appetite of the management regarding future acquisitions and expansion plans. Removal from the watchlist now should be considered as a positive news, despite the (currently) low indebtedness of the company.