The international rating agency S&P Global Ratings has downgraded DTEK Renewables’ long-term issuer rating from B- to CCC+. The agency's decision was directly caused by the illegal actions of officials of state-owned companies, which led to the non-payment of the historical debt to DTEK Renewables for green electricity production.
S&P Global Rating said in a statement, “The company has not received USD 97 million (UAH 3 billion) of historical debt yet, which was supposed to be paid off using the funds received from the recent issue of Ukrenergo's Eurobonds in the amount of USD 825 million. We see increased risks for the collection of these receivables due to the energy crisis in Ukraine and the recent statement of the President of Ukraine ..., so we are downgrading the rating of DTEK Renewables from B- to CCC +.”
S&P emphasised that DTEK Renewables was the only company that did not receive payment. This is despite Ukrainian legislation very clearly providing for a proportional distribution of funds to all producers of electricity from renewable sources.
Maris Kunickis, CEO of DTEK Renewables commented on the decision of S&P: “There is no doubt that the government’s action in discriminating against DTEK Renewables in the payment of debts for RES producers has increased the risk of investing in Ukraine’s economy. It will be hard for Ukraine to restore international investors’ trust. And what is more critical is that this scandal will also negatively impact the further development of Ukraine’s renewables sector, which is an essential milestone in the decarbonisation of Ukraine’s economy.”
DTEK Renewables considers the decision of the “Guaranteed Buyer” State Enterprise not to pay the debt as a deliberately political move, in direct contradiction to Ukraine’s obligations to the European investors who have purchased the NEC Ukrenergo Eurobonds.
The company is undertaking all possible legal measures to protect its rights and legitimate interests both at the national level and with the relevant international organisations.
