Moody's raises ENERGA SA ratings

Moody's raises ENERGA SA ratings

Moody’s Investors Service has appreciated ENERGA's resilience to fluctuations on the electricity market and the company's high share of the regulated and income-stable distribution business. Moody's has affirmed the ‘Baa1’ rating of ENERGA SA and the provisional ‘(P)Baa1’ rating on the EMTN programme. The outlook on the ratings has been changed from negative to stable.

Moody's rating affirmation takes account of Energa's high share of regulated distribution activities in the Group's EBITDA (ca. 72 % as of end-September 2013). This improved the company’s cash flows in an environment of weak wholesale power prices. The Agency also appreciated the Group's small generation portfolio, which makes it resistant to negative market developments.

The change in rating outlook from negative to stable follows Energa's IPO on the Warsaw Stock Exchange on 11 December 2013, which resulted in a reduction in the state ownership by nearly 35%, with the Government of Poland keeping a majority share of over 50%.

According to Roman Szyszko, CFO at ENERGA Group, the upgrade of rating outlooks is a result of ENERGA Group’s growing position on the energy market. It is also a message to investors that we are well prepared to deliver our future development plans efficiently.

In October this year, Fitch affirmed ENERGA SA's long-term foreign-currency rating at 'BBB' and its national rating at 'A', with stable outlooks. Both agencies have reported annually on ENERGA Group’s credit rating since 2011.