Standard and Poor's Ratings Services said on Friday it revised its outlook on Hungary’s Mol to stable from negative, reflecting the company’s improved performance. . The S+P's now sees a larger likelihood that the company will be able to execute its aggressive 2010 investment plan, including acquisitions, while keeping its financial profile in line with the ratings. Nevertheless, S&P continues to expect that the MOL's current very strong financial profile will weaken in the next few years as a result of substantial acquisition spend. At the same time, Standard and Poor's affirmed its 'BBB-'corporate credit and senior unsecured debt ratings on Mol.
Our view: S&P was negative on the MOL’s outlook due to its aggressive outlooks plans (Udmurtneft). We see the news as slightly positive for MOL.