Fitch: Act good for Poland power generators

Fitch Ratings said the act on rules for covering stranded costs resulting from early termination of power purchase agreements by Poland's power generators - recently approved by the Polish Parliament - improves the position of power generators in the long-expected restructuring process of the Polish power sector.

There are several important changes compared to the draft act submitted to the Parliament in early 2007, which are beneficial to generators and their creditors secured on power purchase agreements, the agency said.

This change will be beneficial for BOT Elektrownia Turow SA (senior secured rating of B with positive outlook) and BOT Elektrownia Opole SA, which in early May were consolidated into the vertically integrated PGE group, Poland's largest power group.

Fitch said it will assess the possible impact of this change on the company's rating once the act is passed.

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