Moody's assigns Vestas with Baa1 rating

Moody's on Feb. 1 assigned a Baa1 long-term issuer rating with a stable outlook to Vestas Wind Systems A/S.

The investment-grade rating considers the long-term growth expectations for the wind turbine market, in which Vestas is the market leader, as well as the gradual expansion into the company's offshore wind segment and its robust cash generation ability, Moody's noted.

"The stable outlook reflects our expectation that the leading market position in the onshore segment and diversification across regions and products will help Vestas to improve profitability from the depressed level seen in 2020 amid the COVID-19 challenges and increased warranty cost," the rating agency added.

In response to the ratings action, Vestas said this will grant access to attractive funding sources and strengthen its competitive position. The turbine-maker has one green bond with €500 million outstanding, which will mature in March 2022.