Current Report No. 29/2015

Topic: Moody's update of information on ENERGA ‘Baa1’ rating

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

The Management Board of ENERGA SA (‘Company’, ‘ENERGA’) announces that Moody’s Investors Service (‘Agency’, ‘Moody’s’) in their credit opinion of 21 December this year reaffirms the ‘Baa1’ rating for ENERGA SA with stable outlook.

The rating is underpinned by the significant proportion of the Group's earnings generated through its distribution operations, the low business risk profile of the networks activities given that they are regulated under transparent regulatory framework and the current strong financial profile of the Group.

However, Moody’s also admits that the rating is constrained by the higher business risk profile of ENERGA generation and supply business, the pressures on the cash flows in the generation segment resulting from potential changes in the support mechanism for renewable generation in Poland and a sizeable investment programme, which if implemented in full scale would result in an increase in the Group debt levels. The stable rating outlook reflects the Agency’s expectation that ENERGA will manage its financial profile in line with the debt ratio guidance set for the current ratings. 

Full content of the Agency’s announcement is available on the Moody’s 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.