Fitch shifts Dudgeon view to negative

Fitch Ratings said it revised the outlook on Dudgeon Offshore Wind Ltd.'s senior secured debt rating to negative from stable and affirmed the rating at A-.

“The revision of the outlook reflects the limited visibility on project future cost evolution pending updated information from an independent technical advisor. Under the Fitch rating case (FRC) we currently apply a 30% stress versus the sponsor case, but we might reassess the assumption if and when an updated TA opinion is available,” the agency said in a press release.

Fitch noted it projected an average debt service coverage ratio of 1.52x compared with 1.54x at the last annual review.

“The DSCR profile is gradually declining and falls below the minimum requirement of 1.51x for the A- rating threshold from 2025. The decline is a result of the increased U.K. corporate income tax rate to 25% from 19% applicable from April 2023,” the agency said.

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