Fitch cuts Breeze notes

Fitch Ratings said it downgraded Breeze Finance SA's €251.9 million class A notes to BB- from BB and €79 million class B notes to B- from B.

The outlook on both classes of notes is negative.

The downgrades reflect an opinion that the original energy production forecasts over-estimated the portfolio's actually achievable energy yield, Fitch said.

The resulting forecasted debt service coverage ratio places both tranches at the lower end of the respective rating categories when compared with similar wind farm transactions, the agency said.

The negative outlooks reflect the transaction's continuing underperformance against base-case expectations, Fitch said, as well as the current lack of clarity on the possible consequences on Breeze due to some German insolvency law provisions.

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