Upgrade of FITCH’s Outlook for ORLEN
Recognised ratings agency Fitch Ratings has upgraded PKN ORLEN’s financial standing, changing the Company’s outlook (BB+) from negative to stable. The upgrade reflects the Company’s consistent deleveraging efforts, improved cash flows as well as the favourable macroeconomic climate in the refining and petrochemicals segments.
Fitch positively views the Company’s efforts designed to enhance its financial flexibility by optimising the working capital and gradually unlocking the funds invested in mandatory stocks. In the Agency’s view, these efforts are providing the Company with an additional safety buffer should the market conditions deteriorate again.
- The change of PKN ORLEN’s outlook to stable is a huge success, reflecting our consistent efforts to strengthen the Company’s financial standing. A steady improvement in the Company’s credit rating is one of our primary objectives. This is why we are determined to persist in the efforts aimed to optimise our cost base, working capital and capital expenditure - said Sławomir Jędrzejczyk CFO and Vice-President of PKN ORLEN’s Management Board.
According to Fitch Ratings, a further improvement of the Company’s credit rating will depend on its cash flows and progress in divesting its non-core assets, as well as progress towards a permanent change of Poland’s mandatory stocks regime.
In H1 2010, the Company reduced its debt burden to PLN 9.8bn, from over PLN 13bn only a year earlier. The Company’s leverage (debt to equity) now stands at 44.7% and is moving nearer the Management Board’s target range of 30%-40%.
