S&P assigns Sweihan PV notes BBB+

S&P said it assigned a preliminary BBB+ rating to Sweihan PV Power Co. PJSC’s (ProjectCo) planned $728 million of fixed-rate senior secured bonds due 2049.

“The financial performance of the ProjectCo under our base-case assumptions results in a minimum debt service coverage ratio (DSCR) of 1.2x, which maps to a preliminary stand-alone credit profile (SACP) of bbb- as per table 15 of the project finance operations criteria. The financial performance under the downside stresses result in a minimum DSCR of 0.96x with DSCRs being above 1x for 23 years and liquidity supporting debt service for the final five years until final maturity,” the agency said in a press release.

S&P said it also provides a +2 notches positive rating adjustment as per its government-related entity criteria, given its opinion there is a moderately high likelihood of government support. “As a result, the preliminary rating on the project is assessed as BBB+.”

Sweihan PV Power will use the issuance to refinance its debt and unwind swaps, fund the debt service reserve account and transaction costs, with a residual amount being distributed to shareholders.

The outlook is stable.

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