Orsted A/S

Availability of wind farms due to travel restrictions; Supply of critical components for projects under construction; and Credit risk for suppliers, counterparts, and customers. These factors could hinder short-term performance due to potential cost overruns and project delays, which have not been observed until now, but we acknowledge the resilient nature of Orsted's business. The stable outlook on offshore wind giant Orsted reflects our assumption that the wind power segment's operating performance will remain credit supportive over the next two years, thanks to the stable and predictable nature of the segment's operations. We expect that the company's relationship with the Danish government will be stable following the sale of the local power distribution assets, and there will be no significant

...Global leader in offshore wind with a market share of about 30%. We view cash flows as highly predictable, with more than 85% of 2019 EBITDA generated from subsidized wind projects in Europe. Construction risk in offshore wind activities is inherently high, particularly given the increasing competition and rapidly improving technology. However, this is offset, in our view, by the company's strong track record of timely and on-budget wind farm construction. Offshore wind giant Orsted's performance is expected to remain steady despite potential short-term operational issues due to COVID-19-related global lockdown. Orsted recently affirmed its 2020 EBITDA guidance of Danish krone (DKK) 16 billion-DKK17 billion. The company recognized the COVID-19-related lockdown could have an impact on: + Availability of wind farms due to travel restrictions; + Supply of critical components for projects under construction; and + Credit risk for suppliers, counterparts, and customers....

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