...July 20, 2023 STOCKHOLM (S&P Global Ratings) July 20, 2023--S&P Global Ratings said today that its '###+/A-2' ratings and positive outlook on Sweden-based multi-utility Vattenfall AB are not immediately affected by the company's announcement that it will make an impairment of Swedish krona (SEK)5.5 billion due to challenges in its Norfolk Boreas Offshore Wind project. The impairment amounts to SEK3.7 billion and the provision for committed costs is SEK1.7 billion. However, a complete stop of the Norfolk projects risks halting--or seriously delaying--Vattenfall's renewables plans. This may change our current view that Vattenfall's business risk profile is on a positive trajectory. Vattenfall has stopped the development of the Norfolk Boreas Offshore Wind project due to challenging market conditions characterized by rising costs, way above inflation, supply chain crunches, and increasing costs of capital. Overall, however, industry costs are estimated to have increased by up to 40%. This...
