SGRE credit warning
Financial service company Fitch Ratings downgraded Siemens Gamesa Renewable Energy’s (SGRE’s) credit outlook from Stable to Negative this week, flagging concerns about the impact of the coronavirus pandemic on the manufacturer.
A Negative outlook indicates that SGRE’s credit rating - currently at BBB, suggesting it can repay issued debt - is likely to worsen over a one- or two-year period.
Unemployment claims from US renewable energy workers tripled from March to April as manufacturing facilities and construction sites were closed to prevent spread of Covid-19.
By the end of April, 95,574 renewable energy jobs had been lost - 23,379 in March and 71,835 last month - according to US Department of Labor data. These figures include all renewable energy jobs - including the wind, solar, hydro, geothermal and biomass sectors.
Network operators cautious
Both Innogy and E.on raised concerns about the impact of the virus in their first-quarter financial statements.
Declining electricity demand could hit the companies’ retail earnings as the pandemic and economic slowdown continues, while Innogy suggested that some customers may fail to settle accounts due to financial hardship.
Germany’s Bundestag passed legislation extending deadlines for renewables developers working on projects during the virus.
The measures were due to be debated in the federal council (Bundesrat) today (15 May).
For updates on how the coronavirus pandemic is impacting the wind power industry, please follow Windpower Monthly’s blog.