4 April 2023
The European credit rating agency, EthiFinance Ratings, has upgraded Solaria’s rating from “BBB” to “BBB+”, maintaining a Stable Outlook.
The report released by the agency has highlighted that “the company’s rating is underpinned by a good business profile, which is driven by an excellent rating in the sector”, positioning it as a leading developer and producer of photovoltaic solar energy in Europe, which currently has 2.8 GW in operation and under construction.
The upgrade of this rating is due to EthiFinance Ratings´positive assessment of Solaria’s financial profile “due to positive leverage and interest coverage ratios” as well as “good performance on ESG issues”.
In addition, EthiFinance Ratings values positively the high profitability of Solaria, whose net income “increased to 90 million euros in 2022, after a significant growth of 87.4% compared to the previous year”. The improvement in overall operating income was mainly due to the increase in production due to the connection of new photovoltaic plants. Annual production in 2022 reached 1.4 TWh, up 63% from 0.86 TWh in the previous year.
The rating highlights that the progress of “Project Finance” (financial debt “without recourse”) as support for investment in new parks and land purchases, “favours a financial structure with a focus on the long term and continued growth, safeguarding cash”.
“This rating upgrade is very important for us at a time when we have consolidated our position as the leading photovoltaic company in Iberia. We are proud that EthiFinance Ratings continues to have confidence in Solaria’s growth strategy for the coming years,” said Darío López, General Manager of Solaria.