Fitch: Bonds coming for Polish companies

Fitch Ratings said in a special report that the Polish domestic corporate bond market, which has experienced a slowdown in issuance to date in 2009 due to the economic slowdown and investors' increased risk aversion, may revive in 2010.

The agency said it believes that several large bond issues planned by companies operating in the power and oil and gas sectors may revive the domestic corporate bond market in 2010.

Among prospective issuers are PGE Polska Grupa Energetyczna SA, Tauron Polska Energia SA and Polskie Gornictwo Naftowe i Gazownictwo SA, who plan large bond issues in the domestic or international bond markets to co-fund their rising capital expenditure requirements.

Fitch said it believes that increased corporate bond issuance in September 2009 following limited issuance from January to August 2009 may signal bond market recovery.

Bond issuance is considered an attractive funding option by a number of large Polish corporations with solid creditworthiness, as bank loans are more difficult and costly to raise than before the global funding crisis, the agency said.

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