BBB+ rating for PKN ORLEN bond issue
Fitch Ratings assigned national rating BBB+ (pol) for the first series of PKN ORLEN's PLN 200m retail bonds issued as part of a twelve-month PLN 1bn bond issue programme. The rating agency also indicated that the company's long-term issuer default rating has a positive outlook and may change from BB+ to BBB- as soon as this year.
As grounds for its decision, the agency pointed to the measures taken by the company to maintain a stable financial standing, such as reduction and maintenance of leverage at a safe level, modest capex taking account of macroeconomic conditions, as well as successful sale of its interest in Polkomtel S.A. According to the rating agency, these measures support the company's creditworthiness in the European oil refining sector, which is still experiencing difficulty due to overcapacity and weaker demand.
"The high BBB+ rating for the first issue of our bonds shows that PKN ORLEN is a reliable issuer, which owing to its balanced financial policy is a solid bet for potential investors. I believe that the agency's opinion will be shared by individual investors and that the public offering of the bonds will prove successful," said Jacek Krawiec, ORLEN’s CEO and President of the Management Board.
According to Fitch Ratings, PKN ORLEN's creditworthiness as an issuer was also boosted by the strategy adopted last year, providing for high financial flexibility. The agency also positively viewed the Company's investment policy, in particular the planned capex, which may be used depending on the implementation of key investment plans and the prevailing macroeconomic conditions.
Last year, Fitch Ratings revised the outlook for PKN ORLEN's long-term rating (BB+) from stable to positive. Concurrently, for the first time the Company was assigned national rating BBB+(pol) with a positive outlook.
