Moody’s rates PKN Orlen bonds Baa3

Moody's Investors Service said it affirmed the Baa3 issuer rating of Polski Koncern Naftowy Orlen SA (PKN Orlen SA) and assigned a provisional Baa3 rating to the euro-denominated senior unsecured bonds to be issued by Orlen Capital AB (publ) and guaranteed by PKN Orlen.

The outlooks are stable.

Moody’s sad the Baa3 rating is underpinned by the large scale of PKN Orlen's production assets, the above average complexity of its refining system, the high level of integration between its refining, retail and petrochemical businesses as well as its leading presence in the Polish wholesale and retail fuel markets.

However, it also reflects the inherent exposure of the group's operating performance and financial results to the volatility of crude oil prices and crude differentials amid chronic pressures affecting refining margins across Europe, the agency said. This is only partly mitigated by the stabilizing effect on its operating result from its petrochemical and retail divisions.

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