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 MOL PLC KMRP Organisation 2021-2 on 13 September 2024 and considered the information and reporting up to 5 September 2024. The credit rating remains as follows:

MOL PLC KMRP Organisation 2021-2 Bond (ISIN HU0000361290), HUF 80bn: BB

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

The rated bond benefits from a better-than-expected liquidity coverage and a relatively stable collateral price, which provide a buffer against the adverse unfolding of current macroeconomic and energy market uncertainties.

Credit-positive (+)
Availability of liquidity. The issuer has collected full regular dividends and the full subsidy. This, together with the interest collections on the government bond investments creates a better-than-expected liquidity position for the issuer. The current liquidity reserves allow to cover the expected vehicle costs and bond interest until maturity. This also prevents the adverse situation that stocks would have to be liquidated to pay the issuer costs, impairing the bond coverage from MOL stock.

Unchanged counterparty profiles. The counterparty risk profiles of the involved entities, i.e. MOL Plc., the guarantor MFB and the two bank service agents OTP Bank and Erste Bank Hungary, remain broadly unchanged, supporting the rating of the bond at the current level.

MOL Plc.’s share price stability (positive). The MOL Plc. Stock price is at a similar level as at closing of the transaction and the long-term volatility has remained stable since closing.

Credit-negative (-)
Macroeconomic environment. The current macroeconomic environment with still high inflation, heightened interest rates, significant energy-price volatility and geopolitical tensions spurs some uncertainty for MOL Plc.’s business model and may reflect adversely on the company’s stock price and its ability to pay dividends.

The methodologies applicable for the reviewed rating (General Structured Finance Rating Methodology, 6 March 2024; Counterparty Risk Methodology, 10 July 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 Sebastian Dietzsch, Senior Director

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