(Reuters) Credit rating agency S&P said it has placed Danish renewable energy firm Orsted on review for a possible debt downgrade due to the company's massive losses on projects in the United States.
The world's largest offshore wind developer said it had halted plans for two U.S. wind farms and that related impairments had surged above $5 billion, sending its share price down 26% to a six-year low.
The offshore wind industry is caught in a perfect storm of rising inflation, interest rate hikes and supply chain delays, casting doubt on U.S. plans to replace fossil fuels in energy production to fight climate change.
S&P on Thursday placed Orsted's 'BBB+' credit rating on 'watch negative' for a possible downgrade by one notch, to 'BBB'.
"Whether we lower our long-term rating depends on the company's remedial plan and our final assessment of its business strategy," S&P said in a statement, adding that it planned to make a decision in the first quarter of 2024.
