Corporate News

Scope Ratings confirmed its investment grade issuer rating BBB- with stable outlook on Encavis AG

Hamburg, 10 March 2020 - SDAX-listed solar park and wind farm operator Encavis AG (Prime Standard, ISIN: DE0006095003) has been rated again by Scope Ratings (Scope) in an updated analysis confirming the investment grade range issuer rating (BBB-). The outlook for the rating is stable. Scope has updated its rating case and financial forecasts for Encavis AG. The update underpins the BBB-/Stable/S-2 issuer rating of Encavis AG and its financing subsidiary Encavis Finance BV as well as the BBB- rating for senior unsecured debt and BB for subordinated (hybrid) debt, such as the convertible hybrid bond (ISIN DE000A19NPE8).

The BBB-/Stable issuer rating is strongly supported by the company's protected business model, bolstered by either prioritised feed-in of generated electricity under availability-based remuneration schemes or risk mitigation through long-term power purchase agreements (PPAs). The company's >> Fast Forward 2025 growth strategy, which earmarks a doubling of capacities by 2025 up to 3.4 Gigawatt is expected to stabilise the business profile as an independent power producer any further through a reduction of incremental effects from specific generation assets or regions.

Reflecting the company's debt maturity profile, sound liquidity measures over the next few years and publicly communicated financial policy, Scope believes that the company will keep debt levels under control as it expands its asset base.

Scope's issuer rating gives international financial market participants clear guidance and an independent assessment of the company's current and medium-term creditworthiness, thus ensuring greater security and transparency.

"We feel confirmed in our work by the investment grade rating awarded by Scope. It reflects again the conservative financing policy pursued since 2016 and the resulting stable long-term balance sheet ratios as well as the very good financial performance of Encavis," welcomed Dr Christoph Husmann, CFO of Encavis AG, the updated analysis. "Encavis' excellent credit metrics increases the range of future growth financing options for Encavis and should also reduce our financing costs further," Dr Husmann added.

To see the updated issuer report please click:

Scope published its initial public rating on Encavis AG and its debt-issuing subsidiary Encavis Finance BV on 18 March 2019. For the official credit rating action release click:

 

About ENCAVIS:
Encavis AG (Prime Standard; ISIN: DE0006095003 / WKN: 609500) is a producer of electricity from renewable sources listed on the SDAX of Deutsche Börse AG. As one of the leading independent power generators (IPPs), Encavis acquires and operates solar parks and (onshore) wind farms in ten European countries. The plants for sustainable energy generation generate stable yields through guaranteed feed-in tariffs (FIT) or long-term power purchase agreements (PPA). Within the Encavis Group, Encavis Asset Management AG specializes in the area of institutional investors.

Encavis AG's environmental, social and governance performance was evaluated by ISS-oekom, one of the world's leading ESG research and rating agencies and received the ISS-oekom Prime label.

Further information on the company can be found at