PNE WIND : is critical of the new rating of Euler Hermes Rating GmbH

PNE WIND AG is critical of the new rating of Euler Hermes Rating GmbH

• Well-filled project pipeline
• Additional positive effects expected from YieldCo
• Board of Management confirms positive outlook

Cuxhaven, January 29, 2015 - The international wind farm developer PNE WIND AG is critical of the updated rating and the basis thereof published today by Euler Hermes Rating GmbH.

The PNE Wind Group is one of the leading publicly listed companies in the development of onshore and offshore wind farms. The Group has a well-filled project pipeline and has a strong position in the international growth markets.

The PNE Wind Group is constantly developing its project pipeline and through its YieldCo plans to offer investors and its shareholders the opportunity to invest directly in commissioned and profitable wind farms on a longer term basis. The YieldCo will primarily be financed by the funds raised during the capital measures completed in 2014. The PNE Wind Group expects that the YieldCo will have positive effects for its ongoing business operations and that the Group will be able to leverage additional benefits out of a bundled wind farm portfolio sale in the context of an initial public offering. The first two wind farms which will be placed in the YieldCo are already under construction and will have a total nominal output of approx. 67 MW when completed. The PNE WIND Group's dependence on individual projects will become significantly less as a result of the YieldCo.

PNE WIND AG is surprised that the normal fluctuations in project development were assessed to be negative. Fluctuations which include deceleration as well as acceleration phases are typical in the multi-year project development business. Due to these business fluctuations, the PNE WIND AG has chosen a three-year period for its business planning and forecasts. The Management Board confirms its cumulative group EBIT forecast of euro 110 to 130 million for the 2014 to 2016 fiscal years, in spite of the risks addressed by Euler Hermes.

The decisive criteria for the downgrade from BB+/Negative to BB-/Negative were the business performance in 2014 and the development of the project pipeline - despite the near term potential for international sales.   Euler Hermes Rating also held market insecurities and the increased dependence on individual products for unsatisfactory. In Euler Hermes Rating's opinion, there are additional risks due to the expected need for extraordinary write-downs and the dispute with a Supervisory Board member who is also the largest single shareholder.

On the basis of the current developments, Euler Hermes Rating is of the opinion that additional risks exist at WKN. Should these risks materialise, this may have a corresponding impact on PNE WING AG.

Euler Hermes Rating lowered the rating of PNE WIND AG to BB- and is of the opinion that a further downgrade may result out of the risks associated primarily with WKN.