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What factors influence the credit rating decisions of wind projects by Moody's?

Moody's Investors Service, a credit rating agency, uses a comprehensive and thorough process to assign credit ratings to wind energy projects. The process typically involves the following steps:

  1. Initial assessment: Moody's begins by conducting an initial assessment of the wind energy project, including its technology, location, size, and the company or entity that is developing and operating it. They also consider the regulatory and policy environment for the project, as well as any relevant market and economic factors.

  2. Data collection and analysis: Next, Moody's collects and analyses a wide range of data on the renewable power plant, including financial information, project documents, and other relevant data. They also conduct site visits and meet with project management, developers and other key stakeholders. This information is used to assess the power plant's creditworthiness and evaluate the project's strengths and weaknesses.

  3. Credit rating committee: Moody's then presents the information gathered during the initial assessment and data collection process to its credit rating committee. The committee is composed of experienced analysts and senior management, who review and discuss the creditworthiness of the wind energy project.

  4. Rating assignment: After the credit rating committee's review, Moody's assigns a credit rating to the wind energy project. This rating reflects the agency's assessment of the power plant's creditworthiness and likelihood of default. Moody's ratings range from Aaa (highest credit quality) to C (lowest credit quality) and are accompanied by a detailed report explaining the rating and the factors that went into the decision.

  5. Monitoring and surveillance: Once the credit rating is assigned, Moody's monitors the wind energy project's performance and updates the rating as necessary. This may include regular monitoring of the power plant's financial performance, as well as any changes in the regulatory, policy or market environment that may affect the power plant's creditworthiness.

Example -Nine Canyon Wind Project

Credit Opinion - Energy-NW-Nine-Canyon-Wind-Project - 16Jan20
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