Orsted A/S announced substantial impairments of Danish krone (DKK) 12.1 billion to be charged in the fourth quarter of 2024 relating its U.S. offshore assets, which significantly increases the size of impairments during 2024 to about DKK19 billion before reversals. The announced impairments relate to U.S. interest rate increases, seabed lease valuations, and the execution of offshore project Sunrise Wind. We view these impairments as negative for Orsted's U.S. offshore economics and overall business and financial profiles. We nevertheless think Orsted continues to have some financial flexibility, and we think particularly capital expenditure (capex) can be lowered and the speed of asset rotation increased to support the rating. We therefore revised our outlook on Orsted to negative from stable and
