Fitch puts PKN Orlen on positive watch

Fitch put PKN Orlen SA’s BBB- long-term issuer default rating on rating watch positive on the planned merger with Grupa Lotos SA and Polskie Gornictwo Naftowe i Gazownictwo SA.

PKN Orlen's credit profile will benefit from larger scale, stronger business diversification and expansion into the more stable utility sector if its merger with the second-largest refiner in Poland, LOTOS, and integrated Polish utility, PGNiG, is completed.

The financial profile of the combined group and its strategic direction will be key to resolving the positive rating watch.

Fitch expects to resolve the RWP once the transactions, especially the merger with PGNiG, are closed, which is expected in the fourth quarter, but the process, including regulatory approvals, may be completed subsequent to six months in the future.

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