(The following statement was released by the rating agency)
Dec 13 - Following a number of enquiries from investors about the analytical approach we are
likely to take when assessing the effect of offshore wind projects on the corporate credit
quality of rated European utility companies, Standard & Poor's Ratings Services has published a
Credit FAQ titled "How The Explosive Growth In Offshore Wind Generation Could Affect European
Utilities' Credit Quality."
In this Credit FAQ, we address the following questions:
-- How will European utilities accommodate the costs of offshore wind projects, in Standard
& Poor's opinion?
-- Will subsidized renewables generation improve the utilities' business risk profiles and
thereby increase debt capacity at a given rating level?
-- Will Standard & Poor's consolidate off-balance-sheet debt relating to investments in
renewables, even if the debt is nonrecourse?
-- Does Standard & Poor's have any examples of renewables-related financial adjustments for
-- How exactly will Standard & Poor's adjust utilities' credit ratios for strategic
renewable energy investments in future?
-- Will Standard & Poor's adjust debt if the utility is an offtaker under a power purchase