Moody's upgrades PGNiG

Moody's Investors Service said it upgraded the issuer rating of Polskie Gornictwo Naftowe i Gazownictwo SA (PGNiG) to Baa2 from Baa3.

The outlook remains stable.

The upgrades reflect an expectation that PGNiG will be able to retain its strong financial metrics over the next years despite substantial investments, which are focused on its exploration and production segment and its distribution grid expansion, the agency said.

Moody's also said it expects significantly lower EBITDA levels in 2019 and 2020 compared to 2018 as the oil-indexed gas supply contracts and lower gas prices are impacting earnings in the exploration and production and trade and storage segments.

This is because the company has currently very significant financial flexibility to absorb somewhat higher debt levels, the agency said.

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