Current Report No. 39/2014

Topic: ENERGA ‘BBB’ rating affirmation by Fitch Ratings

Legal grounds: Article 56 section 1 item 2 Act on Offerings – current and periodic information

The Management Board of ENERGA SA (‘Company’, ‘ENERGA SA’) announces that Fitch Ratings (‘Agency’, ‘Fitch’) has affirmed today the ‘BBB’ long-term foreign and local currency Issuer Default Ratings of ENERGA SA with a Stable Outlook and the ‘BBB’ senior unsecured rating for notes issued by its subsidiary ENERGA Finance AB (publ).

The Agency justifies the ratings maintenance by the dominant share of the regulated distribution business in the ENERGA Group’s EBITDA, which results in low business risk and good cash flow predictability.

Fitch Ratings in their report do not exclude an uplift over the Long-term Issuer Default Rating for ENERGA and the Company’s senior unsecured debt rating in case the dominant role of the distribution segment in ENERGA Group’s CAPEX and its strategy is maintained, as well as further improvements in the regulatory framework take place. The Agency expects i.a. implementation of a multi-year tariff system and elimination or reduction of the cash flow impact of the obligation to purchase electricity from RES (a so called ‘Ex Officio Seller’s” function).

Full content of the Agency’s announcement is available on Fitch Ratings website.

Legal grounds:

§ 5 section 1 item 26 of the Minister of Finance Decree dated 19 February 2009 on current and periodic information disclosed by issuers of securities and conditions for recognizing as equivalent information required by the laws of a non-member state.