S&P rates Weglowa notes B+

Standard & Poor’s said it assigned a preliminary B+ long-term corporate credit rating to Kompania Weglowa SA.

The agency also said it assigned a preliminary B+ rating to the €750 million proposed senior unsecured notes.

The outlook is stable.

The final rating will depend on the company’s ability to issue about €750 million of senior unsecured notes.

The ratings reflect the company’s weak business risk profile and highly leveraged financial risk profile, S&P said.

The ratings factor in two notches of uplift for government-related entity support from its stand-alone credit profile of B-, the agency said.

The ratings also consider the track record of the government providing extraordinary support over the last decade as a strong rating factor, S&P said.

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