Fitch lowers PKN Orlen to negative

Fitch Ratings said it has changed Poland's PKN Orlen SA's outlook to negative from stable.

Its ratings are affirmed at issuer default BBB and short-term F3.

The negative outlook reflects PKN group's increasing exposure to the more volatile petrochemicals business due to its planned investments in this segment and an aggressive growth strategy through regional acquisitions, the ratings agency said.

Fitch said the BBB/F3 ratings take into account PKN group's dominant and sustainable market position in Poland, its cyclicality of cash flows, its continued cost-cutting program and a modest financial leverage.

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