09.11.2022
PKN ORLEN with highest ever long-term rating from Fitch
PKN ORLEN is consistently strengthening its financial position and credibility for investors. Its credit standing has now been confirmed by Fitch Ratings, which upgraded PKN ORLEN’s Long-Term Issuer Default Rating (IDR) by two notches, to ‘BBB+’, outlook stable. The upgrade follows successful closing of the merger between PKN ORLEN and PGNiG, the Polish state-owned gas utility company, as well as its earlier track record of M&A transactions. PKN ORLEN’s attractive credit profile for the financial market is also demonstrated by its highest ever rating of ‘A3’ assigned by Moody's Investors Service in October this year.
– We keep delivering on our strategic vision. We have just successfully closed the merger with PGNiG, following earlier deals through which we merged with the LOTOS Group and Energa, creating Central Europe’s largest energy group. In terms of revenue, we now rank among the world’s top 150 companies. The diversified business mix and even larger scale of operations will provide us with liquidity, and thus with the ability to invest in areas that are crucial to building future value of the combined group. Our strong business position has been appreciated by research analysts. The high credit ratings they have awarded give us an additional advantage in potential talks we may hold to secure funding for further investment projects, key to the Group and to bolstering Poland’s energy security – says Daniel Obajtek, CEO of PKN ORLEN.
Concurrently with the upgrade of PKN ORLEN’s long-term rating from ‘BBB-’ to ‘BBB+’, Fitch Ratings comprehensively upgraded all credit ratings assigned to the Company. The upgrade reflects PKN ORLEN’s successful efforts to integrate operations within the oil and gas sectors, strategic to the country’s energy security. Fitch analysts also point out that the completed M&A processes have resulted in greater diversification of revenue sources, which will enhance the stability of the combined group’s financial results.
This will help it raise funding for advanced investments in zero- and low-carbon energy sources, primarily offshore wind assets, supporting the energy transition and ensuring long-term growth of the ORLEN Group. In the first six months of 2022 alone, the Group’s investments reached PLN 6.3bn, almost as much as its total capex spending in 2014-2015. By the end of 2022, a total of PLN 15.2bn will have been spent on investments.