Creditreform Rating has affirmed the unsolicited corporate issuer rating of OMV AG at A-. Creditreform Rating has also affirmed the unsolicited corporate issue rating of the long-term local currency senior unsecured notes issued by OMV AG at A-. These issues are included in the list of ECB-eligible marketable assets, which can be found on the ECB's website. The outlook for the ratings has been changed to stable from negative. For more details regarding the ratings, please refer to our rating report below.
Creditreform Rating has revised the outlook for the corporate issuer rating of OMV AG and changed it to negative from stable. The main reason behind this decision are the expected negative value adjustments and probable overall negative effects on the OMV's activities in connection with the current geopolitical tensions arising from Russia-Ukraine conflict. Creditreform Rating affirms the rating at A-, but expects a deterioration of the financial metrics in the financial year 2022. Creditreform Rating has also changed the outlook of the A- unsolicited corporate issue rating of the long-term local currency senior unsecured notes issued by OMV AG to negative from stable. These issues are included in the list of ECB-eligible marketable assets, which can be found on the ECB's website. For more details regarding the ratings, please refer to our press release below.
Creditreform Rating has confirmed the unsolicited corporate issuer rating of OMV AG at A-. The outlook remains stable. The result of the key financial figure analysis for the 2020 financial year, which was characterized by the negative effects of the COVID-19 induced crisis and the takeover and full consolidation of Borealis AG, remained in line with our expectations. The company was able, inter alia through the implementation of cost-cutting measures, to generate a relatively solid operating cash flow. These measures were accompanied by a moderate investment and dividend policy. The development in the 2021 financial year shows, against the background of the globally stabilizing markets and prices for energy sources and oil products, a significant improvement in the sales and earnings as well as the operating cash flow of the company. The partly already implemented measures for debt relief through disposal of assets, which are no longer the focus of the corporate strategy, are expected to support a further financial ratios improvement in the medium term. The corporate strategy, which aims to deepen the added value through petrochemicals and the development of new, low-carbon and carbon-free product areas, combined with management commitment of maintaining solid financial figures, contributes to our rating assessment. Based on the solid stand-alone rating, the relative proximity to the state has a positive effect on the rating. We assume a certain likelihood of financial support for OMV from the Republic of Austria in an event of a crisis.
Creditreform Rating has downgraded the unsolicited corporate issuer rating of OMV AG from A to A-. The outlook remains stable. With the unsolicited corporate issuer rating of A-, OMV AG possess a high level of creditwothiness and a lower risk of default. Building on a solid stand-alone rating, the relative proximity to the Austrian state has a slightly positive effect on the rating. We assume a certain likelihood of financial support for OMV from the Republic of Austria in an event of a crisis. Based on the business development in 2020, which will be impacted on one hand by lower oil and gas prices but also by impairments, we assume a deterioration in the results of the 2020 financial key figure analysis. Overall, this, together with a deteriorated medium to long-term assessment of the business model, which remains heavily dependent on fossil fuels, leads to a downgrade of 1 notch to A-. The one-year outlook for the rating is stable. We presume that with assumed progress towards a sustainable containment of the COVID-19 pandemic and an economic recovery in 2021, oil and gas prices and the demand for crude oil derivatives will improve as a result.
Creditreform Rating has carried out an unsolicited rating of OMV Aktiengesellschaft. The rating has been set to A with stable outlook.