Fitch: Polish power sector consolidation positive

Fitch Ratings said that the recent creation of large vertically integrated state-owned power groups by the Polish government should enhance the Polish power sector's business profile.

According to Fitch, the Polish government created two main power groups, Polska Grupa Energetyczna and Energetyka Poludnie SA, by contributing state-owned generation and distribution assets to the different groups.

The agency said that this gives Polska Grupa and Energetyka Poludnie respective market shares of 40%/30% and 17%/30% in Poland's power generation and distribution sectors.

This restructuring enhances Polska Grupa's financial position by way of the sizeable generation and eight regional distribution assets it has received from the government, the agency noted.

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