Moody's downgrades Energa

Moody's Investors Service said it downgraded Energa SA to Baa2 from Baa1.

Concurrently, Moody's downgraded to Baa2 from Baa1 the backed senior unsecured ratings of Energa Finance AB (publ). The outlook is negative.

The downgrades conclude the review for downgrade, which Moody’s started on Dec. 11, the agency said.

The downgrade follows PKN Orlen’s successful tender for all of Energa’s shares.

“The downgrade of Energa's ratings reflects the change in the company's ownership and Moody's view that the credit profile of Energa's new majority shareholder PKN Orlen acts as a constraint on Energa's rating, given that there are no ring-fencing covenants in place which would insulate Energa's creditors from the credit risk of the wider PKN Orlen group,” the agency said in a press release.

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