Summary

The Trump administration continues to oppose wind power, instead prioritizing fossil fuel energy such as natural gas, which the U.S. can produce at low cost and scale for reliable baseload energy production. The financial and operational performance of the U.S. wind power sector has long been influenced by federal policy. Given the Trump administration's stance against offshore wind power in particular, we maintain a negative outlook on the sector's development of additional projects in the U.S. and their associated credit quality, at least through 2028.

Key Highlights:
-- The Trump administration is steering capital away from U.S. offshore wind power projects and toward natural gas and oil, citing energy security and reliability considerations.
-- Developers are being incentivized to cancel offshore wind leases, with reimbursements tied directly to investments in U.S. fossil fuel infrastructure, including LNG export facilities and pipeline capacity.
-- An unfavorable federal policy stance, combined with tariffs, loss of tax credits, and project disruptions, is weakening project economics and investor confidence, leading to a negative near-term credit outlook for the sector.
-- Stop-work orders, legal battles, and funding cuts have delayed or jeopardized multiple large-scale offshore wind power projects, even as some resume construction or reach completion.

"The policy environment has shifted markedly," says Kevin Beicke, Vice President, Asset Finance Ratings. "President Trump's opposition to offshore wind power has introduced significant regulatory uncertainty, further undermining investor confidence and tightening access to capital."

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