Fitch affirms PKN Orlen

Fitch Ratings said it affirmed Polski Koncern Naftowy Orlen SA's long-term foreign currency issuer default rating at BBB-.

The outlook is stable.

“The affirmation reflects PKN's business diversification, with operations in refining, petrochemicals, fuel retail and upstream oil and gas segments, a strong position in the Polish market, and a robust balance sheet,” the agency said in a news release.

“We believe that PKN's current conservative financial profile has sufficient headroom for the proposed acquisition of Grupa Lotos SA (Lotos) and that the deal would enhance its business profile, particularly in the downstream segment.

“However, the resulting improvement in the group's business profile would have to be weighed against its strategic direction and appetite for leverage over the rating horizon.”

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