This updated report replaces the existing criteria (published Feb. 23, 2012) without modifying Fitch’s analytical approach, the company says.

The report includes further clarification of Fitch’s assessment of solar power projects in operation compared to projects under construction. No changes to the ratings of existing transactions are anticipated as a result of the application of the updated rating criteria.

The report also provides a summary of the broad attributes that support the ratings for solar power projects by highlighting the six key rating drivers that Fitch evaluates when rating debt issued for solar power projects. The rating drivers are as follows:

– Completion risk: reasonableness of plan to achieve commercial operation, considering technology risk, contractor qualifications and construction contract terms, including completion guarantees;

– Operation risk: stability and adequacy of plant performance supported by a qualified operator, comprehensive maintenance regime and reliable technology.

– Revenue risk – volume: measured variability of solar resource; scope, quality and reliability of a project’s energy production forecast;

– Revenue risk – price: strength, duration and flexibility of the power sales arrangement, as well as the stability of the regulatory support framework;

– Debt structure: composition of payment terms and strength of covenants to support debt payment, maintain adequate liquidity and limit leverage;