Default and Recovery Curve, and Implied Credit Yield Curve

Predict, Not Extrapolate.

Concord New Energy Group (Chiwin 182.HK) Default and Recovery Curve, Implied Credit Curve (60 downloads)

Concord New Energy (182.HK) is a builder and operator of wind and solar power plants in China. Prior to 2016, the company was primarily engaged in equipment manufacturing and construction. Since then, the company has focused on acquiring new power plants and operating as power generator. The company has grown its power plant asset and revenue from power generation significantly over this period.

The company’s operating asset mainly consists of power plants under the PP&E. Most debts are assumed to be secured by the power plants at 75% LTV. Power plants takes two years from initial acquisition to becoming fully operational. Receivables and payables are significant in the company’s financial positions.

The Modtris model on Concord comprises of 30 actions, 110 total parameters and 60 active parameters. Parameters are calibrated to the historical financial statements from 2016 to 2019.

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