...TAURON Polska Energia S.A.'s Stable Outlook, revised from Positive in September 2026, reflect Fitch Ratings' expectation that Tauron's funds from operations (FFO) net leverage will remain within the 3.5x-4.5x sensitivity range for the rating, rather than decline. We expect distribution EBITDA to be lower than previously forecast as the weighted average cost of capital (WACC) normalises from its high levels in 2024-2025. Lower expected supply performance will also reduce EBITDA relative to prior projections. At the same time, we forecast negative free cash flow (FCF), due mostly to high capex, which will drive FFO net leverage to an average of 3.9x in 2026-2030 from 1.9x at end-2025. The rating reflects Tauron's dominant share and solid market position in regulated electricity distribution, but also limited profitability and a weak asset base in generation, due to structural changes to the Polish market....
