S&P Downgrades Orsted On U.S. Offshore Risks

S&P has downgraded Danish wind power company Orsted to BBB due to higher leverage on its balance sheet and U.S. impairments in 2023. The offshore wind industry has faced challenges such as supply chain delays and rising costs. Orsted remains confident in its ability to manage these risks. S&P maintains a stable outlook on the company and expects improvements in its financial metrics. Orsted has made adjustments to its investment and capacity targets and paused dividend payouts. The company aims to restore investor confidence after halting the development of two U.S. offshore wind projects.

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Frequently Asked Questions (FAQs)

Q: Why did S&P downgrade Ørsted's credit rating?

A: S&P downgraded Danish wind power company Ørsted from its previous credit rating to BBB. The downgrade was attributed to higher leverage on the company's balance sheet and major risks associated with U.S. offshore wind projects.

Q: What are the potential risks associated with Ørsted's U.S. offshore wind projects?

A: The specific risks associated with Ørsted's U.S. offshore wind projects have not been detailed in the provided search results. However, offshore wind projects can generally face risks such as regulatory challenges, technical difficulties, higher costs, and delays, any of which could impact a company's financial position.

Q: When did this downgrade occur?

A: The downgrade was reported 23 hours ago from the timing mentioned in the first search result, which does not provide a specific date.

Q: How might this downgrade affect Ørsted?

A: A credit rating downgrade typically results in higher borrowing costs for a company, as investors demand higher interest for perceived increased risk. It may also impact the company's reputation and could limit its ability to attract investment or secure financing for future projects.

Q: Does the downgrade impact any of Ørsted's operations outside of the U.S.?

A: The search results do not provide information specific to Ørsted's operations outside of the U.S. being affected by the downgrade. The downgrade is cited in connection with U.S. offshore risks, so any impact would be mainly in relation to the company's U.S. offshore wind projects.

For more detailed information, you would need to read the full article on MarineLink with the title "S&P Downgrades Ørsted On U.S. Offshore Risks". Unfortunately, I cannot provide a direct link to the article.