**Step 1 – Identify the relevant industry**  
Ørsted A/S is primarily a developer and operator of offshore wind farms and other renewable‑generation assets. It does not benefit from traditional rate‑base regulation, so its business risk profile is best assessed under the **Unregulated Power & Gas** sector methodology.

**Step 2 – Compute Adjusted EBITDA for 2021 and 2022**  

| Item (DKK million) | 2021 | 2022 |
|---------------------|------|------|
| Profit Loss from operating activities before interest, taxes, depreciation & amortisation (EBITDA) | 24 296 | 32 057 |
| **Non‑recurring items** | | |
| – Loss on disposal of non‑current assets (adjustment + ) | 7 920 | 10 885 |
| – (Gain) on disposal of investments (adjustment – ) | –742 | –331 |
| **Joint‑venture proportional EBITDA** (share of profit/loss) | +27 (loss) | –154 (profit) |
| **Adjusted EBITDA** = EBITDA + non‑recurring adjustments – JV profit | **32 985** | **42 457** |

*Notes*  
- “Loss on disposal of non‑current assets” is taken from the cash‑flow adjustment line; a loss is added back.  
- The gain on disposal of investments is subtracted.  
- For the JV contribution, a loss is added back (+27) and a profit is subtracted (–154).

**Step 3 – Compute FFO (Funds From Operations)**  

FFO = Adjusted EBITDA – cash interest – cash taxes  

| Item (DKK million) | 2021 | 2022 |
|---------------------|------|------|
| Adjusted EBITDA | 32 985 | 42 457 |
| Cash interest paid (operating activities) | 3 985 | 8 548 |
| Cash taxes paid (operating activities) | 1 380 | 1 263 |
| **FFO** | **27 620** | **32 646** |

**Step 4 – Compute Adjusted Debt**  

Adjusted Debt = (reported debt + finance‑lease liabilities + hybrid capital + other debt‑like items) – eligible cash  

| Item (DKK million) | 2021 (as of 2022‑01‑01) | 2022 (as of 2023‑01‑01) |
|---------------------|--------------------------|--------------------------|
| Long‑term borrowings | 31 502 | 60 451 |
| Short‑term borrowings | 19 493 | 2 830 |
| Finance‑lease liabilities (non‑current) | 6 812 | 7 697 |
| Finance‑lease liabilities (current) | 720 | 569 |
| Hybrid capital | 17 984 | 19 793 |
| **Total debt & lease items** | **76 511** | **91 340** |
| Eligible cash (cash + short‑term financial assets) | 8 624 + 21 228 = 29 852 | 16 178 + 25 197 = 41 375 |
| **Adjusted Debt** | **46 659** | **49 965** |

*Notes*  
- “Eligible cash” includes cash and current financial assets at fair value through profit or loss (highly liquid).  
- No pension deficit or guarantees are present in the data, so they are omitted.

**Step 5 – Leverage ratio (Adjusted Debt / Adjusted EBITDA)**  

- 2021: 46 659 / 32 985 = **1.415 ×**  
- 2022: 49 965 / 42 457 = **1.176 ×**  

Change = 1.176 – 1.415 = **–0.239 ×** (≤ –0.2 ×) → **Improving**.

**Step 6 – Cash‑flow coverage ratio (FFO / Adjusted Debt)**  

- 2021: 27 620 / 46 659 = **0.592**  
- 2022: 32 646 / 49 965 = **0.654**  

Change = 0.654 – 0.592 = **+0.062** (≥ +0.03) → **Improving**.

**Step 7 – Combine the two signals**  

Both leverage improvement (‑0.24 ×) and cash‑flow coverage improvement (+0.062) indicate a better credit profile.

**Conclusion – Credit trend 2021 → 2022: Improving**  

<answer>Improving</answer>