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The affirmation of Orsted A/S’s ratings in December 2022 reflects the company’s leading market position globally in offshore wind power, which benefits from long-term price support mechanisms and good cash flow visibility in its countries of operation. ���������ֳ� expects Orsted’s leverage to increase in 2023-2025 as the company implements its large capex plan, but for it to remain commensurate with the ‘BBB+’ rating. The affirmation also reflects Orsted’s solid liquidity despite a substantial increase in collateral and margin postings that were driven by large increases in power and gas prices. Leading Offshore Wind Market Position: Orsted is the global leader within offshore wind with an installed capacity of 8.9GW at end-September 2022, predominantly in the UK, Germany, Denmark and the Netherlands. ���������ֳ� believes that its exposure to construction risk has decreased significantly in the past five years, leading to better cash flow predictability, with a rise in the number of operating offshore wind farms to about 30 with four under construction. Gradually Increasing Diversification: Orsted completed several acquisitions in the past five years and now owns a portfolio of onshore wind farms of 3.5GW and solar photovoltaic farms of 0.7GW, both mainly in the US. This has diversified its operations by renewable technology and geography, which supports the rating. Orsted also has a portfolio of combined heat and power plants with a heat capacity of 3.4GWe and power capacity of 2.5GW (based on biomass, coal and gas) that reported substantially higher EBITDA in 9M22 due to high power prices.