Fitch affirms Greenko Energy’s IDR and note ratings at ‘BB’; maintains negative outlook
1 min read . Updated: 17 Feb 2023, 10:30 AM IST
Premium- Greenko’s ‘BB’ rating is underpinned by the relatively high revenue visibility from the group’s diversified portfolio of 138 renewable-power assets, which have 5.3GW of capacity in operation
Global ratings agency Fitch has affirmed Greenko Energy Holdings’ (Greenko) long-term foreign-currency issuer default rating at ‘BB’. The outlook remains negative. The agency has also affirmed the ‘BB’ ratings on the senior notes issued by Greenko Solar (Mauritius) Limited (GSM), Greenko Investment Company (GIL), Greenko Dutch B.V (GBV), Greenko Power II Limited (GPL) and Greenko Wind Projects (Mauritius) Ltd (GWPML).
GSM, GIL, GBV, GPL and GWPML are subsidiaries of Greenko, which guarantees all these notes.
Greenko’s ‘BB’ rating is underpinned by the relatively high revenue visibility from the group’s diversified portfolio of 138 renewable-power assets, which have 5.3GW of capacity in operation.
The rating is also supported by Greenko’s commitment to deleveraging, strong access to funding as well as liquidity support and sizeable equity injection by its strong shareholders, which include Singapore sovereign wealth fund GIC, Abu Dhabi Investment Authority (ADIA) and ORIX Corporation (A-/Stable).
The negative outlook reflects Greenko’s low headroom within its EBITDA/net interest cover against the 1.8x sensitivity over the next two-to-three years.
“Greenko’s receivable days have decreased over the last six months to January 2023 under late payment surcharge (LPS) rules, but risks remain on the continuity of the improvement over the next 12 months," Fitch said.
“We also expect Greenko’s debt to rise on construction of 6.8GW of four pumped storage projects (PSP) and acquisition of a further 66% stake in the Teesta hydro project, of which it currently owns 34%, putting pressure on its credit metrics," it added.