Scope observed a breach of the company’s standstill agreement with creditors, which points to an imminent default risk. Due to nonreliable, insufficient, and inaccurate information and the misuse of funds, the agency is not able to uphold its ratings.

Scope reinstates Optimum Solar’s issuer rating of C/Negative and the senior unsecured debt rating of C as the restructuring plan ensures the company remains a going concern, after a selective default due to a distressed exchange.

The temporary standstill agreement with all bondholders must meet certain conditions and should ensure the protection of bondholders and other stakeholders alike.

The downgrade is driven by a much weaker financial risk profile as customers of Optimum Solar find it hard to finance projects, hampering its operations. Other problems include poor governance and imminent default risk due to a lack of liquidity.

The issuer rating is driven by the company’s profitability and the supportive domestic regulatory environment. Constraints include weak diversification and an elevated leverage, which is expected to increase further.

The amended bond terms, which relate to amortisation and the use of proceeds, have no rating impact.

The issuer rating is driven by the company’s stable profitability and the supportive domestic regulatory environment. Constraints include weak diversification and an anticipated rise in leverage driven by growth.