Fitch rates Tauron eurobonds BBB

Fitch Ratings said it assigned an expected BBB rating to Tauron Polska Energia SA's upcoming eurobonds.

The ratings reflect the high share of regulated and fairly stable distribution business in Tauron's EBITDA, Fitch said.

This contributes to cash flow predictability at a time when conventional power generation, a key segment, is under pressure due to a challenging operating environment and limited fuel mix diversification with a high reliance on coal, the agency said.

Despite allocating fairly high capital expenditure for conventional power generation by 2020, distribution continues to dominate Tauron's capex plan, followed by generation and coal mining, the agency said.

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