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Rating Action:

Hong Kong, July 12, 2019 — Moody’s Investors Service has assigned a Aa2 rating to the proposed backed senior unsecured US dollar green notes to be issued by Hanwha Energy USA Holdings Corporation and guaranteed by Korea Development Bank (KDB, Aa2 stable, ba2).

The rating outlook is stable.

Hanwha Energy USA plans to use the proceeds from the issuance to finance and/or refinance, in whole or in part, new or existing projects related to renewable energy.

RATINGS RATIONALE

The Aa2 rating assigned to Hanwha Energy USA’s notes reflects the Aa2(cr) long-term Counterparty Risk (CR) Assessment assigned to KDB, because Moody’s believes that the terms of the unconditional and irrevocable guarantee that KDB provides on the notes are sufficient for credit substitution.

The CR Assessment reflects Moody’s opinion on the likelihood of default by a bank on counterparty obligations and contractual commitments, including third-party guarantees.

For details of KDB’s rating rationale and profile, please refer to its most recently published Credit Opinion on https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1181661.

The stable rating outlook on the notes mirrors the stable outlook on KDB’s rating.

WHAT COULD CHANGE THE RATING UP/DOWN

Any change in KDB’s CR Assessment would lead to a corresponding change in the rating of the notes.

The guarantee is effectively a senior unsecured obligation of KDB, because KDB’s obligations under the guarantee constitute direct, general and unconditional obligations of KDB which will at all times rank at least pari passu with all other present and future unsecured obligations of KDB.

The principal methodology used in this rating was Rating Transactions Based on the Credit Substitution Approach: Letter of Credit-backed, Insured and Guaranteed Debts published in May 2017. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

Hanwha Energy USA Holdings Corporation, wholly owned by Hanwha Energy Corporation, is a developer of solar power projects and an independent power producer of solar power primarily in North America. The company is primarily engaged in project development for utility-scale solar power plants, including site control, project finance, securing power purchase agreements with local utility companies and the construction of solar power plants. The company typically sells the solar power plants to investors once the power purchase agreement is in place and construction has commenced.

 As of 30 June 2019, the company’s installed capacity of solar power projects developed and sold totaled 807 MW, and installed capacity of solar power projects currently under development totaled 9,308 MW.

Korea Development Bank was established in 1954 as a government-owned financial institution pursuant to the KDB Act. With KRW260.1 trillion in assets ($233.9 billion) at year-end 2018, the bank is the largest policy bank in Korea.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody’s rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider’s credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Moody’s considers a rated entity or its agent(s) to be participating when it maintains an overall relationship with Moody’s. Unless noted in the Regulatory Disclosures as a Non-Participating Entity, the rated entity is participating and the rated entity or its agent(s) generally provides Moody’s with information for the purposes of its ratings process. Please refer to www.moodys.com for the Regulatory Disclosures for each credit rating action under the ratings tab on the issuer/entity page and for details of Moody’s Policy for Designating Non-Participating Rated Entities.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody’s legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

The first name below is the lead rating analyst for this Credit Rating and the last name below is the person primarily responsible for approving this Credit Rating.

Mic Kang
VP – Senior Credit Officer
Project & Infrastructure Finance
Moody’s Investors Service Hong Kong Ltd.
24/F One Pacific Place
88 Queensway
Hong Kong
China (Hong Kong S.A.R.)
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077

Terry Fanous
MD-Public Proj & Infstr Fin
Project & Infrastructure Finance
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077

 

Releasing Office:
Moody’s Investors Service Hong Kong Ltd.
24/F One Pacific Place
88 Queensway
Hong Kong
China (Hong Kong S.A.R.)
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077

 

https://www.moodys.com/research/Moodys-assigns-Aa2-to-Hanwha-Energy-USAs-proposed-notes-guaranteed–PR_404869