S.A.G. Solarstrom's credit rating suspended

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In the wake of Friday’s announcement by German solar developer S.A.G. Solarstrom that it is assessing whether its business model can survive rising project costs, the weekend brought more unwelcome news for the Freiburg-based company.

Solarstrom announced late on Friday, Credit rating agency Creditreform Rating had suspended Solarstrom‘s credit rating pending a review of the company’s ‘key financial figures.’

Solarstrom, which had enjoyed a BB+ credit rating, had announced earlier in the day a major deal with an unnamed energy company had fallen through because of the upfront payments and post-project warranty commitments demanded by the client.

A spokesman told pv magazine that, in the wake of the contract loss – thought to be for several projects in Britain amounting to around 117 MW – the company was assessing whether it could continue in the project development business which makes up the lion’s share of its work.

The announcement by Solarstrom of Friday’s credit rating suspension added the developer has been asked to supply the necessary figures for Creditreform to review the company’s credit score.