Type of ratings: Corporate

Rating value: BBB

Outlook: Stable

License: EthiFinance Ratings


EthiFinance Ratings affirms Canadian Solar Inc.'s "BBB" rating, maintaining its Stable outlook. The company's rating is underpinned by its ability to have achieved a positive performance in 2021 despite very adverse cost conditions. In addition, the company has maintained adequate debt and liquidity levels, considering the high investments required by its business. ESG factors do not have a significant impact on the company's rating. Canadian Solar is a leading manufacturer of solar photovoltaic modules, provider of solar energy and battery storage solutions, and developer of utility-scale solar power and battery storage projects with a geographically diversified pipeline in various stages of development. Over the past 21 years, Canadian Solar has successfully delivered around 71 GW of premium-quality solar photovoltaic modules to customers in more than 150 countries. Likewise, since entering the project development business in 2010, Canadian Solar has developed, built and connected more than 6.6 GWp in over 20 countries across the world. As of June 2022, considering both the development of its solar and storage projects, the company had 2.7 GW of projects under construction, 5.5 GW of projects in backlog 20.9 GW in advanced stage of development and 28.3 GW in early stage. Additionally, Canadian Solar had 0.3 GWp of solar projects in operation (gross figure of 0.8 GWp) and long-term service agreements within its battery storage integration segment amounting to 0.8 GWp. The company turnover grew considerably in 2021, reaching $5,277.2M (+51.8% YoY), resulting in a $498.8M EBITDA (+10.1% YoY) and a 9.8% EBITDA margin. NFD/EBITDA at year end 2021 stood at 3.1 times.


Rating action: Affirmed

Action date: 2022-12-14

Date last rating: 2022-12-14

Date first rating: 2021-12-03


Executive summary:


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