Upgrade of Moody’s Outlook for ORLEN
Ratings agency Moody’s Investor Service has upgraded PKN ORLEN’s financial standing, changing all the Company’s rating outlooks from negative to stable. The upgrade reflects the Company’s consistently strong operating performance and improved financial position.
Moody’s stresses that PKN ORLEN’s performance has been better than expected, especially in the light of the continuing weakness (compared with the period 2007 – Q1 2008) of the refining and marketing sectors. In the agency’s opinion, the improvement of PKN ORLEN operating performance reflects its high refining capacities, focus on high-margin mid-distillates (given the falling margins for gasolines) and the successful implementation of measures designed to yield efficiency gains.
- The change of PKN ORLEN’s outlook is good news and a huge success, which reflects our efforts aimed at optimising the cost base, working capital and capital expenditure. A steady improvement in the Company’s credit rating is one of our primary objectives. This is why we are determined to persist in our efforts aimed to further strengthen the Company’s financial standing - said Sławomir Jędrzejczyk CFO and Vice-President of PKN ORLEN’s Management Board.
Moody’s expects the conditions on the European refining market to remain challenging and volatile. According to the agency, any further upgrade of the Company’s rating will depend on its ability to maintain robust operating performance, finalise the sale of assets to further deleverage its business, and manage its balance sheet in a sustainable manner.
