Moody's changes Greenko view to negative

Moody's Ratings said it revised the outlook to negative from stable for Greenko Energy Holdings' (GEH) and affirmed its Ba2 corporate family rating and the Ba2 backed senior unsecured ratings for Greenko Dutch BV (GDBV), Greenko Power II Ltd. (GPII), Greenko Solar (Mauritius) Ltd. (GSML), Greenko Wind Projects (Mauritius) Ltd. (GWPM) and Greenko Mauritius (GM).

“The change in outlook to negative reflects the near-term weakening of GEH's stand-alone credit quality, due to concurrent large-scale capital expenditure projects which are currently being, or will be, undertaken by GEH, such as several pumped hydro storage projects (PHSPs) and the latest announced acquisition of a large hydropower project.

“Although GEH has a track record of execution, these projects will generate cashflow with a lag due to complexity. This rating action follows GEH's announcement to acquire a 60.08% equity stake in Sikkim Urja Ltd. (SUL) that owns and operates a 1,200 megawatt (MW) Teesta III hydropower project in the state of Sikkim, India,” Moody’s said in a press release.

The agency said it expects the cost and capital expenditures for Teesta III to cost $300 million to $400 million.

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