Fitch ups Elektrownia Turow bonds to B+

Fitch Ratings said it upgraded Elektrownia Turow BV's €270 million guaranteed bonds maturing in 2011 to B+ from B. The bonds are guaranteed by BOT Elektrownia Turow SA. Fitch also said it upgraded the company's senior secured debt rating to B+ from B.

The outlook has been removed in line with the Fitch's issuer default ratings and recovery ratings methodology.

The upgrade reflects recent amendments to the bonds' terms and conditions, which will enable the company to terminate its power purchase agreement early and receive cash compensation for stranded costs, Fitch said. It also reflects the continued reduction of debt and continued debt restructuring, the agency said.

Without a power purchase agreement, the company will be exposed to market risk, Fitch said. That risk will be partly mitigated by the company's operations in the vertically-integrated PGE group and by an expected increase in electricity prices in Poland, the agency said.

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