Fitch Ratings has revised Ørsted’s credit outlook to stable from negative and affirmed the Danish utility’s long-term issuer default rating at BBB, citing improved financial flexibility following a planned €8 billion (DKK60 billion) capital increase.
The agency also affirmed Ørsted’s senior unsecured debt rating at BBB and subordinated debt at BB+.
Fitch said the capital raise is expected to “materially improve Ørsted’s short-term financial flexibility and reduce reliance on asset farm-downs.” The move follows recent financial pressures, including a 30% decline in Ørsted’s share price and a credit downgrade by S&P.
Ørsted’s revised farm-down target of DKK35 billion for 2025–2026 is now seen as more attainable, though Fitch warned that execution risks remain due to investor concerns over risk exposure. The company anticipates over DKK35 billion in proceeds from asset sales during this period, with DKK7 billion already realised in 2025.
Close to DKK40 billion of the capital raised will enable Ørsted to take full ownership of the Sunrise Wind project in the U.S., while the remaining DKK20 billion will support the company’s asset rotation strategy, Fitch said.
The agency expects funds from operations (FFO) net leverage to average 2.3x through 2026, remaining within rating sensitivities, but to rise to nearly 3.0x in 2027 as major investments conclude and dividend payments resume.
“Timely disposal of a 50% stake in the 3GW Hornsea 3 project will be important,” Fitch noted, adding that Ørsted remains exposed to delays and cost overruns, with approximately 4GW of its 7GW under-construction capacity still fully owned.
Fitch said Ørsted’s business profile continues to benefit from a high-quality, largely contracted asset base, with around 80% of revenue protected from inflationary pressures. The Danish state’s proportional participation in the capital increase was highlighted as a sign of continued investment support, though it does not affect the credit rating.
Ørsted had liquidity of about DKK75 billion at the end of June 2025, including cash, liquid securities, and committed credit lines. Fitch stated that the capital increase will fully cover expected negative free cash flow—after disposals—for the next two to three years.
The agency warned that a downgrade could result if FFO net leverage exceeds 3.7x, interest coverage weakens, or if project delays and cost overruns erode the company’s contracted revenue base below 80%. An upgrade would require greater clarity on long-term strategy, consistent earnings from contracted or incentivised output, and leverage maintained below 3.0x.
