Research Update: Wind Offshore Giant Orsted A/S 'BBB+' Rating Affirmed As Steady Performance Is Expected Despite COVID-19; Outlook Stable

We expect Danish wind offshore giant Orsted A/S to withstand operating uncertainty steaming from COVID-19so that we still expect it to generate EBITDA of Danish krone (DKK) 16 billion-DKK17 billion during 2020 and S&P Global Ratings-adjusted funds from operations (FFO) to debt of 30%-33%. Adjusted debt is expected to remain almost stable in 2020 compared with 2019, at around DKK37 billion. We expect Orsted will further improve its position within the offshore wind segment over the coming two years as investment in renewable projects, notably onshore and offshore wind, are expected at DKK100 billion over 2020-2022, though construction risk will be higher. We are affirming our 'BBB+' long-term issuer credit rating on Orsted A/S. The stable outlook indicates that we

...- We expect Danish wind offshore giant Orsted A/S to withstand operating uncertainty steaming from COVID-19so that we still expect it to generate EBITDA of Danish krone (DKK) 16 billion-DKK17 billion during 2020 and S&P Global Ratings-adjusted funds from operations (FFO) to debt of 30%-33%. Adjusted debt is expected to remain almost stable in 2020 compared with 2019, at around DKK37 billion. - We expect Orsted will further improve its position within the offshore wind segment over the coming two years as investment in renewable projects, notably onshore and offshore wind, are expected at DKK100 billion over 2020-2022, though construction risk will be higher. - We are affirming our '###+' long-term issuer credit rating on Orsted A/S. - The stable outlook indicates that we expect adjusted FFO to debt to remain well above the target of about 25% for the current rating over 2020-2022. While the global lockdown creates some uncertainty over Orsted's short-term performance, the company has credit...

Research Update