Euler Hermes assigns A rating to German Volkswind, outlook "stable"

Jan 17, 2013 - German wind farm developer Volkswind GmbH has been awarded an A rating in terms of creditworthiness and sustainability with a "stable" outlook for the next 12 months by Euler Hermes Rating Deutschland GmbH.

The ratings agency pointed to the company's high profitability, thanks to its strong market position in Germany and France, its very good internal financing potential and capital structure. The financial flexibility is good.

Volkswind operates in a market segment that offers a high level of planning security due to legally regulated, long-term purchase guarantees and minimum reimbursement. Hence, the wind power installations, which the company operates, ensure high cashflow stability. Capacity expansion, on its part, reduces the dependence on project partners, while offering further profitability and liquidity potential.

Volkswind further has an averagely stable business model and is, thus, not under pressure to continuously install or sell a certain number of wind energy equipment. The long-term increase of the renewable energy share and wind power, in particular, in overall energy supply also has a positive impact on the company's rating, according to Euler Hermes.

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