Affirmation of Energa SA's rating by Moody's

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  • Current reports
Title: Affirmation of Energa SA's rating by Moody's
Date: 2022.31.10
Report no.:  Current Report No. 42/2022

Current Report No. 42/2022

Date: 31 October 2022

Subject: Affirmation of Energa SA's rating by Moody's

Legal basis: Article 17(1) MAR - inside information.

The Management Board of Energa SA ("Company", "Issuer") informs that on 31 October 2022 the rating agency Moody's Investors Service ("Agency", "Moody's") affirmed the Company's Long-Term Issuer Ratings - Domestic Currency at "Baa2". Simultaneously, the Agency has affirmed the "Baa2" backed senior unsecured ratings and the "Baa2" guaranteed senior unsecured EMTN program of Energa Finance AB (publ) - the Company's subsidiary. The outlook on all ratings has been changed to positive from stable.

The rating action follows the upgrade by the Moody's of the rating of the Company's majority owner PKN ORLEN S.A. ("PKN ORLEN"), to A3 with a stable outlook. The upgrade of PKN ORLEN's rating was mainly driven by its merger with the company Polskie Gornictwo Naftowe i Gazownictwo S.A.

The Agency indicates that the Issuer's ratings continue to reflect the company's overall low business risk profile (given that the major share of the company's earnings stems from regulated electricity distribution) and a good liquidity position. Simultaneously, Moody's points out that these positives are balanced by the higher business risk profile of the Company's power generation and energy supply businesses as well as execution risks related to an investment program over 2021-30, which will increase financial leverage.

The positive outlook on the Issuer's ratings reflects Moody's views that the improved credit quality of its owner, PKN ORLEN, will also stand to benefit Energa SA as the two companies further integrate.

The Agency's full report is available on the Moody's website. The rating was awarded at the request of the Issuer.

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