Fitch rates Katowicki notes BB-

Fitch Ratings said it has assigned Katowicki Holding Weglowy SA an expected long-term issuer default rating and senior unsecured rating of BB-(exp).

The outlook on the long-term issuer default rating is stable.

The agency also assigned the group's debut senior notes to be issued by KHW Finance AB (Publ) a BB-(exp) expected rating and has also assigned the company an expected national long-term rating of BBB(pol)(exp).

Fitch said it views KHW's standalone profile as commensurate with a B rating reflecting the company's large scale of operations, good reserve base and higher quality coal compared with Polish peers resulting in higher average selling prices. However, the company's rating is constrained by its high production costs, weak current profitability and increasing leverage.

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