Fitch assigns ReNew Power’s proposed US dollar senior secured notes ‘BB-’ rating

PTI New Delhi | Updated on January 13, 2020 Published on January 13, 2020

Fitch Ratings on Monday said it has assigned clean energy firm ReNew Power’s proposed US dollar senior secured notes a rating of ‘BB-’ with a stable outlook.

According to Fitch Ratings, ‘BB’ ratings indicate an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time.

However, business or financial flexibility exists that supports the servicing of financial commitments, as per Fitch Ratings.

“Fitch Ratings has assigned a rating of ‘BB-’ to ReNew Power Pvt Ltd’s (ReNew, BB-/Stable) proposed US dollar senior secured notes,” the rating agency said in a statement.

The proposed notes will be senior secured obligations of the issuer and will have direct security of a 250 MW wind-power operating project (SECI-II) directly held by ReNew Power Pvt Ltd - the holding company - along with a pledge over certain equity shares and preference shares of ReNew Power Services Pvt Ltd, the statement said.

ReNew Power Services Pvt Ltd is a wholly-owned subsidiary that holds the assets acquired by ReNew in its acquisition of Ostro Energy in April 2018, it added.

The proposed US dollar notes also include a $20 million interest service reserve account.

ReNew is a renewable independent power producer, with around 5.4 GW of operational capacity of wind (60 per cent) and solar (40 per cent) power projects and a project pipeline of around 2.6 GW.

Published on January 13, 2020
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