Moody's upgraded Energa SA's rating

Current Report No. 36/2023

Date: 21 December 2023

Subject: Moody's upgraded Energa SA's rating

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

The Management Board of Energa SA ("Company", "Issuer") informs that on 21 December 2023 the rating agency Moody's Investors Service ("Agency", "Moody's") upgraded the Company's Long-Term Issuer Ratings - Domestic Currency from the level of "Baa2" to "Baa1". Simultaneously, the Agency upgraded the Company's backed senior unsecured rating and the guaranteed senior unsecured EMTN program rating of Energa Finance AB (publ) (the Company's subsidiary) from the level of "Baa2" to "Baa1". The outlook on all ratings was changed to stable from positive.

The upgrade of ratings reflects the deeper integration of the Company into its higher rated parent company ORLEN S.A. ("ORLEN", A3 stable). The Agency expects ORLEN to continue to provide support, which will benefit the Company's credit quality.

Moody's believes that the Energa Group ("Group"), through its key focus on electricity distribution and increasingly renewables, will play an increasingly important role within the ORLEN Group's strategy going forward.

The Agency indicats that the Issuer's "Baa1" ratings also 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 grid activities.

Simultaneously Moody's adds that the above positives are balanced by the higher business risk profile of the Group's power generation and energy supply businesses as well as execution risks related to its sizeable investment program over the next few years.

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