Moody’s shifts PKN Orlen view to positive

Moody’s Investors Service said it changed the outlook for PKN Orlen SA to positive from negative and affirmed the Baa2 the ratings of the €500 million due 2021 and €750 million due 2023 of senior unsecured bonds issued by Orlen Capital AB and guaranteed by the company.

The outlook reflects the company signing a letter of intent with the Polish treasury department to take over its 71.88% share in Polskie Gornictwo Naftowe I Gazownictwo SA and the agreement with the European Commission on remedies to achieve regulatory approval for the takeover of Grupa Lotos, according to Janko Lukac, a Moody’s assistant vice president and lead analyst for PKN Orlen.

“This will increase PKN Orlen’s business diversification and stability of cash flows, while the intention to finance the transactions mainly by equity will limit the company’s leverage at a conservative 2x -2.5x adjusted debt to EBITDA,” Lukac said in a press release.

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