Announcements

    Drinks

      New analysis on Encavis AG
      FRIDAY, 06/03/2020 - Scope Ratings GmbH
      Download PDF

      New analysis on Encavis AG

      Scope Ratings has updated its rating report on Encavis AG, rated BBB-/Stable.

      The latest information on the rating, including rating reports and related methodologies are available on this LINK.

      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).

      To see the updated issuer report please click here.

      The BBB-/Stable issuer rating is strongly supported by our view on 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 (3.4 GW in 2025E against 1.7 GW at YE 2020E) 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.

      The rating is constrained by the company’s weaker financial risk profile relative to its business risk profile, with high leverage including non-recourse debt at project SPV level and modest, but robust, debt protection measures (interest coverage). 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 updated forecasts for 2019E-21E signal a slightly improved headroom on the company’s EBITDA against the negative rating trigger.

      This publication does not constitute a credit rating action. 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 here.

      Related news

      Show all
      Scope publishes final rating methodology for European Real Estate Rating Methodology

      28/3/2024 Research

      Scope publishes final rating methodology for European Real ...

      Scope affirms BB/Stable issuer rating on Hörmann Industries GmbH

      28/3/2024 Rating announcement

      Scope affirms BB/Stable issuer rating on Hörmann Industries GmbH

      Scope downgrades Nitrogenmuvek to B from BB-, places it under review for possible downgrade

      27/3/2024 Rating announcement

      Scope downgrades Nitrogenmuvek to B from BB-, places it under ...

      Webinar: Commercial real estate – how concerned should debt investors be?

      26/3/2024 Research

      Webinar: Commercial real estate – how concerned should debt ...

      Scope affirms BB-/Stable issuer rating of Infogroup Holding Kft.

      25/3/2024 Rating announcement

      Scope affirms BB-/Stable issuer rating of Infogroup Holding Kft.

      Scope affirms Opus Tigáz’s BBB- issuer rating and revises the Outlook to Positive from Stable

      25/3/2024 Rating announcement

      Scope affirms Opus Tigáz’s BBB- issuer rating and revises the ...