Swot Analysis : O & M Contractor Essays

1611 Words Dec 10th, 2016 7 Pages
The analyst recommends a 4- rating, which is comparable to Re Central Valley Holdings 2, LLC (“Central Valley”) (4-) and SunE Solar Spirit LP (“SSP”) (4-). Like the Borrower, Central Valley and SSP are PV solar facilities selling the energy output pursuant to long-term off-take agreements with the investment grade counterparties. The following analysis supports the Borrower’s credit profile that is similar to the other two projects:
The market risk profile, in terms of the counterparty creditworthiness, price and volume volatility, and the tenure of the off-take agreement, is similar and reflects the visibility and predictability of cash flows from the long-dated off-take agreements with the strong creditworthy off-takers; The Borrower’s operating risk profile, in terms of the strength of the O&M contractor, is stronger than the operating risk profile of Central Valley, but its credit profile is adversely affected by a weak financial profile, in terms of the financial ratios (the minimum DSCR and the average DSCR), comparative to the Central Valley’s financial profile . Similarly, The Borrower’s operating risk profile, in terms of solar resource volatility, is stronger than the Central Valley’s operating risk profile, but its credit profile is adversely affected by a weak financial profile, in terms of the financial ratios (the minimum DSCR and the average DSCR), comparative to the SSP’s financial profile.

The Analyst believes that the assigned 4- rating is appropriate…

Related Documents