Fitch puts Energa on negative watch

Fitch Ratings said it placed Energa’s BBB long-term issuer default rating on rating watch negative following PKN Orlen’s tender for all of Energa’s shares

“The RWN reflects the risk of Energa becoming tightly linked with a lower-rated capital group. In addition, the offer may increase refinancing risk related to Energa’s €500 million bonds due in March 2020 and of Energa’s loan agreements through change of control clauses. We may affirm or downgrade the IDR by one notch and aim to resolve the RWN once the tender progresses and details of the transaction emerge,” Fitch said in a press release.

Energa’s rating will reflect its links with PKN Orlen after the tender. Energa’s ownership by PKN Orlen at only marginally above the 66% threshold specified in the tender terms may mean Energa stays a listed company with legal and operational independence. If so, Energa’s rating could also continue to reflect its standalone credit profile. “Tight ownership and full integration of Energa into PKN Orlen’s capital group would most likely constrain Energa’s rating to that of the consolidated credit profile,” Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.