Bulletin: Orsted Ratings Unaffected By Planned Sale Of Danish Power Distribution Assets And Residential Customer Business

PARIS (S&P Global Ratings) June 26, 2018--S&P Global Ratings said today that its ratings and outlook on Ørsted A/S (BBB+/Stable/A-2) are unaffected by Orsted's planned sale of its power distribution assets in Denmark and the related residential customer business and City Light. We see the potential sale of power distribution assets and related activities in Denmark as marginally credit negative. Despite their limited weight on Ørsted's overall business portfolio (less than 8% of 2017 EBITDA), power distribution activities in particular are relatively low risk and are a stable and predictable source of cash flow to Ørsted. Moreover, the sale will reduce the diversification of Ørsted's business portfolio, which will now focus almost entirely on wind offshore activities. Ørsted expects the

...PARIS (S&P Global Ratings) June 26, 2018--S&P Global Ratings said today that its ratings and outlook on +rsted A/S (###+/Stable/A-2) are unaffected by Orsted's planned sale of its power distribution assets in Denmark and the related residential customer business and City Light. We see the potential sale of power distribution assets and related activities in Denmark as marginally credit negative. Despite their limited weight on +rsted's overall business portfolio (less than 8% of 2017 EBITDA), power distribution activities in particular are relatively low risk and are a stable and predictable source of cash flow to +rsted. Moreover, the sale will reduce the diversification of +rsted's business portfolio, which will now focus almost entirely on wind offshore activities. +rsted expects the assets to be divested in the first half of 2019 and we understand that the proceeds from the disposal will be used to complete value-creating investments in renewables and in maintaining the current dividend...

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