Fitch rates Polski Koncern Naftowy bonds A-(pol)

Fitch Ratings said it assigned a national senior unsecured rating of A-(pol) to Polski Koncern Naftowy Orlen SA's domestic four-year 200 million in Polish zloty bonds.

This is the company's third bond issue within its 1 billion bond in Polish zloty issue program. The bonds constitute senior unsecured obligations of the company. There are no financial covenants included in the bond documentation, Fitch said.

The ratings reflect the company's improved financial profile thanks to several measures taken by management to reduce leverage, including the disposal of Polkomtel SA in 2011 and its modest capital expenditure in 2011 to 2013 following a capital expenditure-intensive period in 2007 to 2010, the agency said.

This supports the company's creditworthiness in the still difficult conditions for the European oil refining sector due to overcapacity and weak demand, Fitch said.

The company also has a long-term foreign-currency issuer default rating of BBB-, long-term local-currency issuer default rating of BBB-, short-term foreign-currency issuer default rating of F3, short-term local-currency issuer default rating of F3, foreign-currency senior unsecured rating of BBB-, local-currency senior unsecured rating of BBB-, national long-term rating of A-(pol) and national senior unsecured rating of A-(pol).

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