Fitch on chances and prospects of Orlen-MOL merger

The Fitch rating agency have positively evaluated the strategic alliance be tween oil concerns PKN Orlen and Hungarian MOL, but their final comments wi ll be announced after they have heard all the details. So far, Fitch has de cided to maintain their negative credit rating perspective for Orlen. The m ost likely scenario envisages the merger of the two companies over the next three years with the mutual purchase of 10-15% stakes in each others compan ies as the first step. Analysts believe that if the transaction with MOL re quired additional financing, then Orlen has still potential to increase its financial leverage. However, they stress that consolidation of the oil sect or has been on the cards for the last few years in Poland, but its effects so far have been rather poor. Due to this they believe that the chances for the merger falling through are very high. According to Fitch, both companies are of similar size. The EBITDA of MOL amounted to $548 million, while Orle n's results topped $520 million. (Parkiet, p. 5) M.M.