S&P lifts Vela Energy, Solaben views to positive

S&P said it revised the outlooks on Vela Energy Finance SA's and Solaben Luxembourg SA's senior secured bonds to positive from stable and affirmed the BBB long-term issue ratings on the bonds.

The Spanish government has commenced the procedure to propose a law that remuneration applicable to certain regulated solar energy projects, including Vela Energy Finance and Solaben, will either remain unchanged until 2031, or decrease slightly to 7.09% until 2025, the agency said.

In both scenarios, the debt service coverage ratios for Vela Energy and Solaben would strengthen and support a higher rating because debt repayments decline from 2020, S&P said.

The positive outlook reflects an expectation that a revision of the remuneration in line with the current proposal will lead to an upgrade, the agency said.

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