S&P rates Aydem, notes B

S&P said it assigned preliminary B ratings to Aydem Renewables (Aydem Yenilenebilir Enerji AS), and its planned offering of up to $750 million in 5.5-year bonds.

“Aydem Renewable benefits from a favorable fixed U.S. dollar-linked renewable energy support mechanism (Yekdem) tariff covering 89% of its revenues in 2020; low-cost hydro operations (84% of installed capacities); low maintenance costs as the fleet is relatively new; and projected improvement in credit metrics on the back of increased power production. These strengths are mitigated by the small scale of the company; observed strong volatility of hydro levels affecting output; high country risks; and projected negative free operating cash flow in 2021-2022 because of sizable growth capital expenditures (capex),” S&P said in a press release.

Aydem will use the proceeds to refinance all its debt.

The outlook is stable reflecting the company’s cash flow and a forecast for debt to EBITDA of 5.5x in 2021 and below 4x in 2022 and funds from operations (FFO) to debt ratios of 13% in 2021 and 20%-23% in 2022, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.