Indian renewable energy companies with diversified portfolios in solar projects are able to tolerate generation shortfalls in wind projects, according to a report by Moody’s.
The report states that rated issuers have sufficient financial flexibility to absorb moderate project underperformance. The credit quality of these companies is further strengthened by strong sponsors, including sovereign wealth funds, which have a history of providing capital and support during challenging times. However, significant underperformance of individual projects may require parental support to meet commitments, Moody’s said in the report.
