Fitch upgraded DTEK Renewables to "CC"

The international rating agency Fitch Ratings confirmed the long-term rating of DTEK Renewables to the "CC" level. This is stated in ExPro Electricity Daily, according to the message dated March 3.

"Fitch Ratings downgraded DTEK Renewables BV's long-term foreign and local currency issuer default rating to 'Restricted Default' (RD) from 'C'." However, Fitch simultaneously upgraded the IDR to 'CC', reflecting the post-restructuring profile of DTEK Renewables with a high default risk," Fitch said.

As indicated by Fitch, the funds at the disposal of DTEK Renewables may not be sufficient to cover the debt in 2023, especially in case of further operational failures and reduced payments from the "Guaranteed Buyer".

According to Fitch, DTEK Renewables has sufficient cash, partly held in Ukraine and partly abroad, for the next bond coupon payments of about EUR 12 million due in May and November 2023. In particular, as indicated by Fitch, the company has not yet been granted an exception to the moratorium on foreign currency transfers, without which it cannot transfer cash available in Ukraine abroad to pay its holders of international bonds.

It is also reported that DTEK Renewables is negotiating with its creditor banks to change the repayment schedule until the end of 2023. Fitch also emphasizes the reduction of electricity production from DTEK Renewables. In particular, the generation of DTEK RES decreased by 70% in March-December 2022.

All of the company's wind power plants, except for the Tyligul wind farm, stopped working.

"In Fitch's opinion, the company's liquidity indicators correspond to the CC category, which indicates a very high credit risk," the agency summarized.