Fitch rates Polski Koncern Naftowy bonds A-(pol)

Fitch Ratings said it assigned Polski Koncern Naftowy Orlen SA's (BBB-/A-(pol)/stable) domestic six-year 100 million in Polish zloty bonds a final national senior unsecured rating of A-(pol).

This is the sixth issue under the 1 billion Polish zloty bond program. The bonds are rated at the same level as its national senior unsecured rating of A-(pol) as they constitute senior unsecured obligations of the company. There are no financial covenants included in the bond documentation.

Fitch said the ratings reflect the company's business diversification with operations in the refining, petrochemical and fuel retail sectors, its strong position in the Polish market and an improved financial profile with funds from operations net adjusted leverage of 2.5x in 2013 (including adjustments for inventory-holding losses and sales of obligatory reserves of crude oil).

The ratings are mainly constrained by the cyclicality of the refining and petrochemical operations, the agency said.

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