Moody’s Ratings has changed its outlook on Orsted to negative from stable while affirming the company’s Baa2 long-term issuer rating.
The ratings agency said the action follows a lease suspension imposed in December on all large-scale offshore wind projects under construction in the United States, including Orsted’s Revolution Wind and Sunrise Wind projects.
Moody’s stated that the suspension increases the risk of construction delays, higher costs and delayed revenues, which it said could weigh on Orsted’s earnings and credit metrics.
Revolution Wind is around 87% complete, with first power expected in early 2026, while Sunrise Wind is about 45% complete.
The agency said a worst-case scenario of project cancellation could push Orsted’s funds from operations to net debt ratio below levels consistent with the current rating.
Moody’s added that the risks are partly offset by recent farm-down agreements for the Hornsea 3 project in the UK and the Greater Changhua 2 project in Taiwan.
However, it stated that income from construction margins and asset divestments is of lower quality and more volatile than earnings from core activities.
The Baa2 rating continues to reflect Orsted’s position as the world’s largest offshore wind developer, its geographic diversification and its exposure to long-term contracted cash flows.
The rating is constrained by execution risks across its construction portfolio, political opposition to offshore wind in the US and increased volatility in cash generation, Moody’s said.
Moody’s also affirmed the Baa2 rating of Orsted Salg & Service and changed its outlook to negative in line with the parent company.
In a statement, an Orsted spokesman said the Danish company noted the announcement by Moody’s.
“Ørsted is committed to a solid investment-grade credit rating, and, as of end of 2025, Ørsted has a liquidity reserve of more than DKK 130 bn which will provide the company with the capacity to manage uncertainty and to execute our business plan which is focused on our core markets in Europe,” he added.