Hungarian Public Integrated Utility MVM Group Assigned 'BBB-' Rating; Outlook Stable

MVM Group (MVM), the largest integrated utility in Hungary with networks regulated under a supportive framework representing a third of its activities, operates a low-carbon-dioxide nuclear-generation fleet. Its position as the leading wholesaler and supplier in Hungary is moderated by its geographic concentration and relatively small size. MVM's expansion strategy focuses on sizable acquisitions in Central and Eastern Europe, the development of its infrastructure, and decarbonization of its generation fleet. We expect MVM to maintain prudent financial leverage, because its healthy operating cash flow, careful risk management, and ongoing support from its sole shareholder, the Hungarian state, support its ambitious investment plan. We assigned our 'BBB-' long-term issuer credit rating to MVM. The stable outlook indicates that MVM will maintain

...June 22, 2021 - MVM Group (MVM), the largest integrated utility in Hungary with networks regulated under a supportive framework representing a third of its activities, operates a low-carbon-dioxide nuclear-generation fleet. Its position as the leading wholesaler and supplier in Hungary is moderated by its geographic concentration and relatively small size. - MVM's expansion strategy focuses on sizable acquisitions in Central and Eastern Europe, the development of its infrastructure, and decarbonization of its generation fleet. - We expect MVM to maintain prudent financial leverage, because its healthy operating cash flow, careful risk management, and ongoing support from its sole shareholder, the Hungarian state, support its ambitious investment plan. - We assigned our '###-' long-term issuer credit rating to MVM. - The stable outlook indicates that MVM will maintain its profitability and deliver on its strategy, while generating operating cash flow (OCF) of about Hungarian forint (HUF)...

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