Fitch: PKN Orlen still on watch

Fitch Ratings said it maintained the Rating Watch negative on PKN Orlen SA's senior unsecured BBB and short-term F3 ratings. The ratings were placed on watch on April 29 following the Czech government's decision to accept PKN's offer for the acquisition of a 62.99% stake in Unipetrol as.

Fitch said it believes that likely negative credit implications of the Unipetrol's acquisition remain in place for PKN, including chiefly a weaker financial profile of the combined PKN-Unipetrol group.

Given Unipetrol's higher exposure to the more volatile petrochemicals business, Fitch said the company's weaker domestic position and complex group structure, PKN's post acquisition business profile may also be weakened until restructuring is completed and some synergies are achieved.

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