Moody’s raises PKN Orlen

Moody's Investors Service said it upgraded Polski Koncern Naftowy Orlen SA’s issuer rating to Baa1 from Baa2 and lifted to Baa1 from Baa2 the rating of the €500 million of senior unsecured notes due 2028 issued by PKN Orlen and €750 million of senior unsecured notes due 2023 issued by Orlen Capital AB (publ) and guaranteed by PKN Orlen.

Moody's also upgraded to (P)Baa1 from (P)Baa2 the senior unsecured rating of PKN Orlen's €5 billion Euro medium-term note program.

The upgrade reflects completing the merger with Grupa Lotos SA, the high likelihood of closing the merger with Polskie Gornictwo Naftowe I Gazownictwo SA, the expectation for sustained adjusted gross leverage at below 2x and expectations for the oil and gas markets to remain strong over at least the next several years, the agency said.

The outlook remains positive for both issuers.

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