Title: Affirmation by Fitch Ratings of ENEA S.A.'s ratings affirmed
Date: 2018.01.10
Report no.:  Current Report No: 53/2018

Current Report No: 53/2018

Date of preparation: 1 October 2018

Short name of issuer: ENEA S.A.

Subject: Affirmation by Fitch Ratings of ENEA S.A.'s ratings affirmed

Legal basis: Article 17 item 1 of MAR - confidential information

Content of report:

The Management Board of ENEA S.A. ("Company") hereby informs that in its press release issued on 1 October 2018 Fitch Ratings agency ("Agency") affirmed the Company's long-term local- and foreign-currency Issuer Default Ratings at ‘BBB' with stable outlooks.

The affirmation reflects the Company's changed business profile with a higher contribution to EBITDA from more risky - according to the Agency - electricity generation and coal mining, but still significant input from the more predictable distribution of electricity. The Agency anticipates that rising CO2 and coal prices will have only a limited impact on results of the generation business as they are expected to be reflected in rising wholesale electricity prices in the Polish market.

The Agency assumes that the Company's involvement in Ostrołęka C project will not exceed PLN 1 billion and that, simultaneously, ENEA S.A. will suspend dividend payments until 2022, which should allow the Company to keep funds from operations (FFO) adjusted net leverage below the level of 3x. Exceeding that level could lead to negative rating action. The Agency views the Company's participation in the construction of the Ostrołęka C coal-fired unit as negative for its credit profile.

Additional information, including the Agency's ratings definitions and principles of their application, criteria and methodologies used, limitations and exclusions of responsibility as well as documents concerning policies and procedures applied are available on the Agency's website at www.fitchratings.com.

The content of the Agency's press release is attached by the Company to this current report.