Moody's affirms PGE Polska

Moody's Investors Service said it affirmed the A3 long-term issuer rating of PGE Polska Grupa Energetyczna SA.

The outlook is stable.

The affirmation follows news that PGE has agreed with the Polish Ministry of Treasury to buy an 84.19% of the shares in Energa SA for 7.5 billion in Polish zloty.

Moody's said the acquisition will strengthen PGE's business profile by increasing its downstream vertical integration and balancing its currently long generation position.

Furthermore, it will increase the share of regulated activities in PGE's cash flow generation and slightly improve its generation mix by adding renewable generation sources, the agency said.

The agency said PGE's financial profile and liquidity position are strong enough to absorb the impact of the acquisition, which is expected to be financed from both company's own resources and additional borrowings.

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