Energa S.A.

Capital/Financing Update • May 29, 2020

Current Report No 48/2020

Date: 29 May 2020

Subject: Fitch Ratings downgrades Energa SA rating

Legal basis: Article 17 (1) of MAR - inside information

TThe Management Board of Energa SA ("Company") informs that, on 29 May2020 Fitch Ratings ("Agency", "Fitch") downgraded the Company'slong-term foreign and local currency Issuer Default Ratings (IDRs) from'BBB' to 'BBB-' with a Stable Outlook, rating for the bonds issued bythe Company's subsidiary Energa Finance AB (publ) to 'BBB-', and ratingfor Energa SA's hybrid bonds to 'BB'. At the same time, the Company'srating was removed from the Rating Watch Negative list, about theplacement on which the Company informed in Current Report No. 34/2019 of10 December 2019.

The main reason for the downgrade as provided by the Agency is theacquisition of the Company - effective from 30 April 2020, PKN ORLENS.A. ("PKN ORLEN") acquired 80.01% of shares in the share capital ofEnerga SA and 85.20% of the total number of votes in the Company.Therefore, in Fitch's opinion, actions resulting in operational andstrategic integration with PKN ORLEN will take place, which implies theneed to bring the rating in line with the rating of PKN ORLEN ('BBB-').The Agency emphasizes the fact that Energa SA's standalone creditprofile continues to be assessed at 'bbb', thanks to, among others, thestability of the Distribution Business Line, with low risks, a highshare in the Group's EBITDA, and predictability of cash flows. Fitchalso welcomes the proposal to halt the Ostrołęka C project in the coalformula and to consider a switch to the gas formula.

The full text of the Agency's report is available on the Fitch Ratingswebsite.