Bulletin: Offshore Wind Giant Orsted A/S Maintains Credit Metric Headroom Despite Its Acquisition

STOCKHOLM (S&P Global Ratings) April 20, 2021--S&P Global Ratings today said that Danish offshore wind giant Orsted A/S (BBB+/Stable/A-2) has ample credit metric headroom despite the announcement that it will spend €571 million (Danish krone [DKK] 4.2 billion) acquiring Brookfield Renewables Ireland (BRI). On a preliminary basis, we expect credit ratios to soften following the deal to about 33%-38% adjusted funds from operations to debt for 2021, down from 54% for full-year 2020. This is also due to an increase in capital expenditure (capex) to DKK32 billion-DKK34 billion in 2021 (excluding the acquisition), up from DKK26 billion in 2020. However, it is still well above our rating thresholds of 23%. We view Orsted's acquisition of BRI as positive, since it

...April 20, 2021 STOCKHOLM (S&P Global Ratings) April 20, 2021--S&P Global Ratings today said that Danish offshore wind giant Orsted A/S (###+/Stable/A-2) has ample credit metric headroom despite the announcement that it will spend 571 million (Danish krone [DKK] 4.2 billion) acquiring Brookfield Renewables Ireland (BRI). On a preliminary basis, we expect credit ratios to soften following the deal to about 33%-38% adjusted funds from operations to debt for 2021, down from 54% for full-year 2020. This is also due to an increase in capital expenditure (capex) to DKK32 billion-DKK34 billion in 2021 (excluding the acquisition), up from DKK26 billion in 2020. However, it is still well above our rating thresholds of 23%. We view Orsted's acquisition of BRI as positive, since it offers potential for growth due to a sizable development pipeline in Europe. It also provides Orsted with a footprint in the European onshore market and diversifies the company's otherwise predominantly offshore focus in...

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