WoDS Transmission plc
Credit Opinion: WoDS Transmission plc: Update following rating affirmation
Rating Action: Moody's affirms WoDS Transmission plc's A3 senior secured rating; outlook stable
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of WoDS Transmission plc
Announcement: Moody's: EMEA regulated networks outlook is stable as regulatory predictability offsets ongoing low allowed returns
Announcement: Moody's: Stable 2018 outlook for EMEA's regulated electric and gas sector driven by good cash flow visibility
Announcement of Periodic Review:
Moody's announces completion of a periodic review of ratings of WoDS Transmission plc
London, 21 July 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of WoDS Transmission plc and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.
This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Key rating considerations are summarized below.
WoDS Transmission plc's A3 senior secured rating reflects (1) a 20-year revenue entitlement period under a perpetual license awarded by Ofgem, the UK electricity regulator, to operate and maintain offshore transmission assets between the onshore grid and the West of Duddon Sands offshore wind farm, which underpins a stable and predictable inflation-linked, availability-based revenue stream, (2) a strong and transparent regulatory regime, (3) a solid operational track record, with all operating and maintenance activities contracted with experienced counterparties, (4) the credit enhancement provided as part of European Investment Bank' (EIB)s Project Bond Credit Enhancement programme, and (5) several creditor protections including debt service and liquidity reserves, restrictions on business activities and additional indebtedness, and a security package that benefits bondholders and the EIB. However, the rating is constrained by (1) a difficult natural environment within which to manage unplanned maintenance, and (2) high leverage.
This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.
The principal methodology used for this review was Regulated Electric and Gas Networks published in March 2017. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
This announcement applies only to EU rated and EU endorsed ratings. Non EU rated and non EU endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.
This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Alastair Sullivan, CFA
Asst Vice President - Analyst
Project & Infrastructure Finance
Moody's Investors Service Ltd.
London E14 5FA
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454
Kevin Maddick
Associate Managing Director
Releasing Office: