Scope Ratings GmbH (Scope) monitors and reviews its credit ratings on an ongoing basis and at least annually, or every six months in the case of sovereigns, sub-sovereigns and supranational organisations.

Scope performs monitoring reviews to determine whether material changes and/or changes in macroeconomic or financial market conditions could have an impact on the credit ratings. Scope considers all available and relevant information when undertaking the monitoring review.

Monitoring reviews are conducted by performing a peer comparison, benchmarking against the rating-change drivers, and/or reviewing the credit ratings’ performance over time, as deemed appropriate by the Lead Analyst or Analytical Team Head, in addition to an assessment of all aspects of the relevant methodology/ies, including key rating assumptions and model(s). Scope publicly announces the completion of each monitoring review on its website.

Scope completed the monitoring review for ITK Holding Zrt. (rated BB-/under review for possible upgrade; senior unsecured debt rating BB-/under review for possible upgrade) on 20 February 2024.

This monitoring note does not constitute a credit rating action, nor does it indicate the likelihood that Scope will conduct a credit rating action in the short term. Information about the latest credit rating action connected with this monitoring note along with the associated rating history can be found on www.scoperatings.com.

Key rating factors

During the course of 2023 Hungarian oil and gas company MOL Group has provided an equity injection of HUF 6bn to ITK Holding, increasing its ownership share to 94% and acquired full control of the issuer. The transaction is expected to positively affect the credit ratings of ITK Holding, as MOL Group is rated significantly higher than the issuer (Scope’s rating on MOL Magyar Olaj- és Gázipari Nyrt. is available to ScopeOne subscribers). On top of its core activities in the oil and gas sector, MOL is active in a diverse range of industries (waste management, car sharing, e-charging, etc. services amongst others).

The new shareholder structure is expected to result in a closer integration of the rated entity into the MOL group, as ITK Holding becomes a fully consolidated entity, and leads to a further alignment on the management and operational level, with the appointment of a new CEO, CFO, other executives and auditors. The decision-making and planning processes are currently being reviewed. The new management has indicated a shift in strategy, previously focused on growth, towards consolidation and cost control. As part of this new strategic direction, each revenue stream (transportation, manufacturing, general distribution, other services) is being reviewed and new strategic goals are set, adapting to a changed business environment.

The BB- issuer rating remains under review for a possible upgrade. Scope will closely follow developments related to the ongoing process. A rating upgrade is not automatic, it is possible in case of successful integration into MOL Group and proof that the standalone credit quality of ITK did not suffer.

The BB- long-term debt rating for senior unsecured debt issued by ITK Holding also remains under review for a possible upgrade.

Scope will resolve the under review status as soon as possible after having received full transparency about the company’s new management, strategy and the degree of integration into the MOL group.

The methodologies applicable for the reviewed ratings and/or rating Outlooks (General Corporate Rating Methodology, 16 October 2023; European Automotive Suppliers Rating Methodology, 6 February 2024) are available on https://scoperatings.com/governance-and-policies/rating-governance/methodologies.
This monitoring note is issued by Scope Ratings GmbH, Lennéstraße 5, D-10785 Berlin, Tel +49 30 27891-0. 
Lead analyst Istvan Braun, Associate Director

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