Current Report No. 22/2015

Date of preparation: 27 November 2015 

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 justified the maintenance of the rating by the fact that the regulated distribution business is the dominating contributor to the Group’s EBITDA, which reduces business risk and ensures predictable cash flows. At the same time the Agency noted the recent decision of the President of the Energy Regulatory Office on the reduction of WACC in 2016, which will drive EBITDA down in the Distribution Segment.

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 further improvements in the regulatory framework. The Agency would expect i.a. implementation of a multi-year tariff system and better visibility of WACC evolution in the medium term.

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.