27.10.2022

PKN ORLEN with highest ever rating from Moody’s

Moody’s Investors Service has once again this year upgraded PKN ORLEN’s rating by raising it to A3, the best ever in the company’s history. The upgrade was driven by the successful implementation of M&A processes, which included obtaining shareholder approvals for the merger of PKN ORLEN with PGNiG, as well as the ORLEN Group’s sound financial footing. The rating outlook was changed to stable.

- We are an attractive and, above all, reliable partner for the financial markets. We consistently build investor confidence. The highest ever rating assigned to PKN ORLEN by Moody’s confirms that our business development direction is right and that we are achieving our goals in line with the adopted strategy. Through successfully completed acquisition processes, we are effectively building a single, strong multi-utility group that will be resilient to market changes. With diversified revenue sources, we have financial stability and can steadily increase investment spending, which strengthens the combined group’s position on the international market and improves Poland’s energy security -  said Daniel Obajtek, President of the Management Board o PKN ORLEN.

Concurrently with upgrading PKN ORLEN’s rating from Baa1 to A3, Moody’s confirmed the company’s Baseline Credit Assessment at Baa2. Moody’s has also raised, from Baa1 to A3, the rating for the EUR 500 million Eurobonds due in 2028 issued by PKN ORLEN under its programme, and for the EUR 750 million issue of Eurobonds due in 2023 by ORLEN Capital AB (publ), with PKN ORLEN acting as an underwriter. The rating of PKN ORLEN’s EUR 5 billion medium-term note programme was also upgraded, from Baa1 to A3.

The high rating from Moody’s reflects the importance of the combined ORLEN Group for Poland’s energy security, following from the integration of operations in the strategic areas of oil and gas. Moody’s also points to the ORLEN Group’s improved financial capabilities after its merger with PGNiG, which will allow it to pursue large projects, particularly related to renewables, thus ensuring further fast-paced growth. Moody’s analysts have also noted that the merger with PGNiG will significantly strengthen the State Treasury’s control over the new ORLEN Group.

PKN ORLEN has been effectively reinforcing all areas of its operations not only through ongoing M&A processes, but also through investments in capabilities across all Group companies. In the first six months of 2022 alone, the Group’s investments reached PLN 6.3 billion, almost as much as its total capex figure in the period 2014–2015. By the end of 2022, PKN ORLEN plans to spend a total of PLN 15.2 billion on investments.