DBRS assigns Drax Corporate BBB

DBRS said it assigned a BBB rating with a stable trend to Drax Corporate Ltd. The issuer is a wholly owned subsidiary of Drax Group plc.

“Drax benefits from its significant size and scale following the acquisition of Scottish Power’s generating assets, which consisted of two hydro schemes, a pumped storage plant in Scotland and four gas power stations (mainly combined cycle gas turbines) in England from Iberdrola SA in December 2018 (the Acquisition),” said DBRS in a press release.

Drax’s 2018 EBITDA increased over 16.5% from 2017 as a result of higher biomass generation and growth in its pellet production business. Moreover, EBITDA in 2017 was affected by unplanned outages at the biomass facilities. The last 12 months ended June 30 EBITDA included contributions from Scottish Power assets but did not include capacity market payments deferred by the government because of the capacity market’s temporary suspension (which was reinstated in October and per company sources, payments were fully recovered in January).

© 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.