Danish wind developer Orsted A/S is facing a steep balance sheet gap even after abandoning some of its offshore wind projects in the US, according to Jefferies International Ltd analysts who cut their recommendation on the company to hold from buy. Penalties of 15 to 18 billion Danish kroner ($2.2-2.6 billion) that the company will need to pay to exit the projects will leave a funding hole that will challenge the company’s BBB+ credit rating, equity analysts including Ahmed Farman wrote in a note. The company may be forced to cut its dividend to help bridge the gap.
Orsted Funding Gap Puts Credit Rating at Risk, Jefferies Says bnnbloomberg.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bnnbloomberg.ca Daily Mail and Mail on Sunday newspapers.
Investors in RWE reacted positively to the utility s business figures on Tuesday. In pre-market Tradegate trading, the share price rose by 1.3 percent compared to the Xetra closing price to 36.80.