The latest information of the rating reports is available on this LINK.

Scope Ratings GmbH (Scope) monitors and reviews its credit ratings on an ongoing basis and at least annually, or every six months in the case of sovereigns, sub-sovereigns and supranational organisations.

Scope performs monitoring reviews to determine whether material changes and/or changes in macroeconomic or financial market conditions could have an impact on the credit ratings. Scope considers all available and relevant information when undertaking the monitoring review.

Monitoring reviews are conducted by performing a peer comparison, benchmarking against the rating-change drivers, and/or reviewing the credit ratings’ performance over time, as deemed appropriate by the Lead Analyst or Analytical Team Head, in addition to an assessment of all aspects of the relevant methodology/ies, including key rating assumptions and model(s). Scope publicly announces the completion of each monitoring review on its website.

Scope completed the monitoring review for Gode Wind 1 Investor Holding GmbH on 14 March 2024 for the BBB+ rating on the senior secured notes with a current outstanding balance of EUR 122.3m.

This monitoring note does not constitute a credit rating action, nor does it indicate the likelihood that Scope will conduct a credit rating action in the short term. Information about the latest credit rating action connected with this monitoring note along with the associated rating history can be found on www.scoperatings.com.

Key rating factors

The BBB+ rating reflects a total expected loss of 0.05% over the notes’ life until maturity, equivalent to a 1.10-year constant-exposure expected risk horizon. Key drivers are the low risks during operation, particularly given the experienced sponsors and operator, and the good technical record. Projected coverage ratios are at the lower end of Scope’s expectations, but this is mitigated by the robust revenue generation, with no effective merchant power price exposure until the notes’ maturity, the low regulatory risk, and the substantial size of the debt service reserve amount relative to the outstanding debt. The project features a fully amortising debt profile followed by a long remaining useful technical asset life. However, the recovery rate of the project is slightly lower than in another Scope-rated peer transaction, Borkum Riffgrund 2, despite the relatively short remaining term of the senior notes. This reflects lower profitability during the project’s tail period due to the smaller-capacity turbine model used.

The project’s actual electricity generation, including compensated curtailment volumes in 2023, was 1.3% above the Scope’s rating case. Uncompensated revenue events (grid outages up to certain thresholds and negative price events) were broadly in line with our rating case (3.3% actual vs. 3.5%). Turbine availability was slightly below our rating case assumption due to outages in December 2023, but performance remains adequate. Overall revenues were in line with Scope rating case expectations. The actual historic DSCR for 2023 was 1.46x, reflecting satisfactory performance. It was above our rating case projection of 1.29x, primarily due to tax differences.

Scope has updated its rating case forecast to reflect revised inflation projections. For the 12-month backward-looking DSCR, the minimum is 1.20x and the average is 1.22x. The projected financial metrics are not materially different from our previous rating case projections. The note life coverage ratio (NLCR) is 1.21x and the project life coverage ratio (PLCR) is 1.31x in our rating case. However, taking into account the required debt service reserve amount (provided by an acceptable L/C with a minimum rating requirement of BBB+), the adjusted minimum NLCR and PLCR are 1.47x and 1.63x, respectively, which are considered robust.

The calculated expected loss is based on updated and improved project specific recovery rates, reflecting an improvement in the calculated attachment point due to the amortisation of the notes and slightly revised tail cashflow assumptions as per our monitoring note published in March 2023.

The methodologies applicable for the reviewed rating (General Project Finance Rating Methodology, 16 November 2023; Counterparty Risk Methodology, 13 July 2023) are available on https://scoperatings.com/governance-and-policies/rating-governance/methodologies.
This monitoring note is issued by Scope Ratings GmbH, Lennéstraße 5, D-10785 Berlin, Tel +49 30 27891-0.
Lead analyst Marton Zempleni, Senior Representative

© 2024 Scope SE & Co. KGaA and all its subsidiaries including Scope Ratings GmbH, Scope Ratings UK Limited, Scope Fund Analysis GmbH, and Scope ESG Analysis GmbH (collectively, Scope). All rights reserved. The information and data supporting Scope’s ratings, rating reports, rating opinions and related research and credit opinions originate from sources Scope considers to be reliable and accurate. Scope does not, however, independently verify the reliability and accuracy of the information and data. Scope’s ratings, rating reports, rating opinions, or related research and credit opinions are provided ‘as is’ without any representation or warranty of any kind. In no circumstance shall Scope or its directors, officers, employees and other representatives be liable to any party for any direct, indirect, incidental or other damages, expenses of any kind, or losses arising from any use of Scope’s ratings, rating reports, rating opinions, related research or credit opinions. Ratings and other related credit opinions issued by Scope are, and have to be viewed by any party as, opinions on relative credit risk and not a statement of fact or recommendation to purchase, hold or sell securities. Past performance does not necessarily predict future results. Any report issued by Scope is not a prospectus or similar document related to a debt security or issuing entity. Scope issues credit ratings and related research and opinions with the understanding and expectation that parties using them will assess independently the suitability of each security for investment or transaction purposes. Scope’s credit ratings address relative credit risk, they do not address other risks such as market, liquidity, legal, or volatility. The information and data included herein is protected by copyright and other laws. To reproduce, transmit, transfer, disseminate, translate, resell, or store for subsequent use for any such purpose the information and data contained herein, contact Scope Ratings GmbH at Lennéstraße 5 D-10785 Berlin.