...Limak Yenilenebilir Enerji Anonim Sirketi's (Limak RES) ratings reflect its small scale, limited geographical diversification, and nearly 90% of its EBITDA being generated from two plants. These factors are offset by strong revenue visibility, healthy asset quality, low offtake risk, and supportive regulation for renewable energy producers in Turkiye (BB-/Stable). Additionally, the foreign-exchange (FX) risk of its newly raised debt is largely mitigated by naturally hedged revenue. We expect funds from operations (FFO) net leverage to average 3.4x over 2025-2028, which aligns with our sensitivities, but we project it to reach 3.6x in 2027 and peak at 3.8x in 2028, exceeding our negative sensitivity of 3.5x. This increase is driven by large capex for the development of two new hydro power plants, Incir and Pervari, resulting in negative free cash flow (FCF). However, we anticipate leverage will decline in 2029, following full-year contributions from the Incir and Pervari power plants. This...
