Fitch upgrades Greenko Energy

Fitch Ratings said it upgraded Greenko Energy Holdings’ long-term foreign-currency issuer default rating to BB from BB- with a stable outlook. The agency also upgraded the ratings of Greenko Solar (Mauritius) Ltd.’s $500 million of 5.55% senior notes due 2025 and $535 million of 5.95% senior notes due 2026 as well as Greenko Investment Co.’s $500 million of 4 7/8% senior notes due 2023 to BB from BB-.

At the same time, the agency affirmed Greenko Dutch BV’s $350 million of 4 7/8% senior notes due 2022 and $650 million of 5¼% senior notes due 2024 at BB. GSM, GIL and GBV are subsidiaries of Greenko.

The restricted groups (RG) for the bonds issued by the subsidiaries have amassed significant cash from their operations. Greenko committed not to take dividends from the restricted group but has accessed RG-level cash via the transfer of debt-free operational assets, which have limited restrictions under the RG bond covenants, Fitch said.

“This has led us to believe that taking a consolidated view of the group will more accurately reflect the risk profiles of the holding company and its RG issuers; GBV, GIL and GSM. Greenko plans to use the accumulated cash to cut debt at its operating entities, with new projects funded by shareholder equity,” Fitch said in a press release.

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