Orsted boosted as ratings agencies split over investment outlook for troubled developer
Fitch upgraded the Danish offshore wind firm to BB+ as capital infusion offers 'short-term financial flexibility'
Investment ratings agency Fitch has upgraded Orsted’s outlook from Negative to Stable and raised its share status to BB+ to reflect positive moves the troubled Danish offshore wind developer has made to put its finances in order.
The rights issue was announced 11 August and caused its share price to plummet by nearly a third. The Danish government owns 50.1% of the developer, with Norwegian state energy firm Equinor buying another 10%.
As the world’s largest offshore wind developer, Orsted has been at the centre of the industry’s recent turmoil, particularly in the US.
Over the past several years, the developer’s financial sheet has taken multiple baths, losing some $5bn as projects failed on surging inflation and interest rates.
More recently, its inability to divest – “farm-down” in financial parlance – itself of a half-stake in its 920MW Sunrise Wind array to New York has thrown a new spanner into its works.
In contrast to S&P, which saw the Orsted’s inability to divest itself of a Sunrise stake as signalling a deterioration of its “overall business environment”, Fitch said “the DKr35bn farm-down target over 2025-2026 is now more achievable”, although it was “still subject to execution risks due to investors' perception.”
Orsted’s share price was lifted on the news, climbing 3.83% in today’s trading on the Nasdaq Copenhagen to close at $11.12.
Orsted operates some 10GW of offshore wind on three continents, with another 4.9GW in construction and more awarded.
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