MVM Group has received investment grade rating from S&P and Fitch international credit rating agencies. The energy group was the first of the 100% state-owned companies to obtain an international credit rating.
As part of its regional expansion strategy, MVM Group has set itself the objective of obtaining an international credit rating, as well. Simultaneously with its successful acquisition in the Czech Republic, MVM initiated the evaluation process to underpin the implementation of its growth targets in the coming years.
Relying on their relevant industrial methodology, Standard and Poor's (S&P) and Fitch Ratings international credit rating agencies established a credit rating for the holding and decided on the assignment of the investment grade rating by examining for example the operating environment, the strategy and the business risks of the MVM Group. S&P assigned BBB– rating, Fitch assigned BBB rating to the MVM Group.
“International credit ratings verify MVM’s strong business profile, leading market positions, stable financial conditions and authentic growth strategy, also demonstrating MVM’s responsible management” emphasized Andrea Mager, Minister without Portfolio responsible for the Administration of National Assets.
“Investment grade credit ratings reinforce the MVM Group’s relations with its creditors and business partners, and may open up possibilities for raising international funds. It is our goal to maintain the ratings in the current grade, and upgrade them to an even higher level” added György Kóbor, Chairman and CEO of MVM Zrt.
The credit rating agencies also acknowledge the supportive involvement of the Hungarian state as the shareholder, however the company was assigned an investment grade rating without consideration for the state support, on a standalone basis. Fitch’s standalone BBB rating is the same as Hungary’s sovereign credit rating. The credit rating agencies assigned a stable outlook to both ratings.
The credit rating of Central European energy companies are typically either similar or weaker than that of the MVM Group. MVM is the third company with Hungarian background and the first fully state-owned business rated by large international institutions accepted by international capital markets.
The existence of the two independent investment grade credit ratings is a key precondition for accessing international capital markets and for maintaining the interest costs of the MVM Group at a competitive level.