Fitch Ratings maintained Energa SA's rating
Belongs to:
- Current reports
Current Report No 2/2022
Date: 21 January 2022
Subject: Fitch Ratings maintained Energa SA's rating
Legal basis: Article 17 (1) of MAR - inside information
The Management Board of Energa SA (_quot;Company_quot;) informs that, on 20 January 2022 Fitch Ratings (_quot;Agency_quot;, _quot;Fitch_quot;) maintained the Company's long-term foreign and local currency Issuer Default Ratings (IDRs) at 'BBB-' with a Rating Watch Positive, rating for the bonds issued by the Company's subsidiary Energa Finance AB (publ) at 'BBB-', and rating for Energa SA's hybrid bonds at 'BB'.
The Agency's upholding of the rating is justified mainly by solid business profile with the Energa Group's ("Group") dominant share in the activities of the Distribution Business Line Group, which is characterized by a lower business risk as compared to the area of conventional electricity generation, as well as strong strategic and operational support from the Company's majority shareholder - PKN ORLEN S.A. Fitch emphasis that the Energa Group is a key part of the ORLEN's Group strategy with regards to energy transition, playing an important role in investing in renewables, including onshore and offshore wind and also in gas-fired power plants. The Agency points out that Energa Group's electricity supply business may come under pressure, if the company is not allowed to fully pass on higher purchase costs of electricity to retail customers.
The Agency also changed Energa SA's standalone credit profile from 'bbb' to 'bbb-' due to a higher than previously expected increase in projected leverage by 2024-2025 on the back of the Group's large capex plan.
The full text of the Agency's report is available on Fitch Ratings website. The rating was awarded at the request of the Company.