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Fitch assigns BBB issuer default rating to Siemens Gamesa


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Fitch assigns BBB issuer default rating to Siemens Gamesa

Fitch Ratings assigned Siemens Gamesa Renewable Energy SA a BBB long-term issuer default rating, with a stable outlook.

"[Siemens Gamesa] occupies a strong market position in the wind turbine manufacturing, installation and maintenance industry, which we believe has good growth prospects," Fitch wrote in a May 22 report.

The rating agency also cited the wind turbine manufacturer's strong financial profile, and took into consideration the majority ownership of Siemens AG, as well as the full consolidation of Siemens Gamesa into Siemens' accounts.

"Although Fitch understands that Siemens is planning to commit its shares in [Siemens Gamesa] into the new energy vehicle it is planning to spin-off, we consider that moderate parent support will remain in place in our rating horizon, so we apply one-notch uplift to SGRE's standalone rating of BBB-," Fitch said.

On May 6, Siemens Gamesa received investment-grade ratings from Moody's and S&P Global Ratings. "We are the first global producer of wind generators to have a credit rating from all the big three agencies," said David Mesonero, CFO of Siemens Gamesa.

Separately, Siemens Gamesa won a contract to supply wind turbines for EDF Renewables Inc.'s 232-MW Milligan wind project in Milligan County, Neb. Under the contract, the company will also provide service and maintenance services for the turbines. The project is expected to enter operations by the end of 2020.

The company also signed a four-year agreement to provide service and maintenance to Pattern Energy Group Inc.'s 218-MW Pattern Panhandle wind facility in Carson County, Texas. Siemens Gamesa will start servicing the turbines later this year, according to a news release.

Siemens Gamesa owns an installed capacity of nearly 20 GW in the U.S.