Fitch rates ReNew Energy notes BB-

Fitch Ratings said it assigned ReNew Energy Global plc (REGP), parent of ReNew Power Private Ltd. (ReNew, BB-/stable), a long-term foreign-currency issuer default rating of BB- with a stable outlook.

Fitch also assigned a BB- rating to the proposed senior U.S. dollar notes to be issued by Diamond II Ltd., a Mauritius-based fully owned subsidiary of REGP. The proposed notes will be unconditionally and irrevocably guaranteed by REGP.

REGP intends to use around two-thirds of the notes' proceeds to reduce debt at REGP and its operating subsidiaries, and use the balance to fund future capex and investments.

“REGP's IDR reflects the group's large, expanding portfolio of renewable power assets, adequate liquidity and our expectations of an improved receivables profile. We also expect REGP's high pace of capex for projects under construction to keep EBITDA net leverage high in the near to medium term,” Fitch said in a news release.

“Even so, we expect interest cover, measured as EBITDA net interest cover, to remain adequate for its BB- ratings.”

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