Fitch assigns BB+ to Energa bonds

Fitch Ratings said it assigned Energa SA's proposed €250 million (1.1 billion Polish zloty) hybrid bonds an expected rating of BB+(EXP).

The proposed securities qualify for 50% equity credit.

The hybrid bonds are to be subscribed by the European Investment Bank.

Proceeds will be used to finance capex in distribution.

The bonds' rating and assignment of equity credit are based on Fitch's hybrids methodology, dated April 27

Fitch said the proposed notes are rated two notches below Energa's BBB long-term issuer default rating given their deep subordination and consequently, lower recovery prospects in a liquidation or bankruptcy scenario relative to the senior obligations. The notes are subordinated to all senior debt.

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