Energa S.A.

Report Publication Announcement • Feb 9, 2017

Current Report No. 11/2017

Date of Preparation: 9 February 2017

Subject: Affirmation of Energa SA's rating by Moody's

Legal Basis: Article 17 Section 1 of the Market Abuse Regulation -confidential information

The Management Board of ENERGA SA ("Company", "ENERGA") hereby reportsthat, on 9 February 2017, the rating agency Moody's Investors Service("Agency", "Moody's") affirmed the ‘Baa1' issuer rating of the Companyand the Baa1 rating of the bonds issued by the Company's subsidiaryENERGA Finance AB (publ). The outlook for the rating is stable.

In the Agency's opinion, the rating reflects the significance of a highshare of the regulated distribution segment in the Group's earnings. Thetransparency of the segment's cash flows favorably affects ENERGA'scredit profile and curtails the risks arising from the execution of theCompany's major capital expenditure program updated in 2016, resultingin an increase in ENERGA's debt ratios, as well as low electricityprices and a weaker support mechanism for renewable generation inPoland. At the same time, in its rating assessment, Moody's assumes thatthe ENERGA Group will not engage in any acquisitions the scale of whichwould significantly exceed the level of capital expenditures accepted inthe Group's updated strategy. Moreover, the rating takes into account ahigher business risk profile for the generation and sales segments. TheAgency notes that a remaining source of uncertainty is the future shapeof the energy market in Poland due to, among other factors, the plannedintroduction of the capacity market. The stable outlook for the ratingreflects the Agency's expectation that ENERGA, despite the occurrence ofunfavorable market factors, will maintain its debt ratios at a certainlevel.

The Agency's full report is available on the Moody's website.