S&P Global Ratings has published its latest edition of Infrastructure Finance Outlook – the quarterly newsletter reviewing the global infrastructure sectors’ key new stories.
Focusing on the rise of political and regulatory risk across the world, this quarter’s Infrastructure Finance Outlook provides global insights from S&P Global analysts on topics including: Brexit’s role in shaping the future of air travel between the U.K. and E.U; whether India can close its infrastructure gap; the path for multilateral lenders looking to increase their engagement with the private sector; as well as the growing importance of ESG factors for infrastructure investment.
Read the latest edition here
Moorgate compiles, edits and designs Infrastructure Finance Outlook.
Of the private capital multilateral lenders have mobilised, only 3% has been invested in low-income countries. This is according to new research by S&P Global Ratings.
The lacking capital is due to the higher underlying investment risks in emerging markets – such as political and regulatory uncertainty, currency exchange risks, and policies that are less clearly defined. S&P Global Ratings believes that a combination of credit enhancements and private-sector catalysation could help to offset the financing gap.
Following Moorgate’s outreach, the news was covered by Infrastructure Investor. To read the full article, click here (please note that the article is behind a paywall)
The Bridging North America General Partnership (BNA) is set to build a 2.5 km bridge connecting Canada and the United States over the Detroit River. S&P Global Ratings recently assigned a preliminary ‘A-‘ rating to the US$350.9 million in medium to long-term bonds that will help to finance the crossing, known as the Gordie Howe International Bridge.
Following Moorgate’s research, Construction Dive, InfraPPPWorld, IJGlobal, InfraNews, and Partnerships Bulletin covered the news.
A recent Infrastructure Investor article assessing investment opportunities in Latin America featured S&P Global Ratings’ research into the development of Colombia’s road network. The rating agency believes that the 4G road network, which began development in 2013, has made “significant progress under the current administration”.
To read the full article, click here (please note that the article is behind a paywall)
S&P Global Ratings has placed Autostrade per I’Italia SpA (ASPI) – as well as parent company Atlantia – on Creditwatch negative following the tragic collapse of the Morandi bridge, Genoa. The placement, which is not itself a rating action, reflects the potential termination of ASPI’s concession agreement with the Italian government, and potential litigation action.
Following Moorgate’s outreach, InfraNews, Partnerships Bulletin, AlacraStore, and Reuters covered the news.
The reality of Brexit is starting to bite the U.K.’s airports, S&P Global Ratings believes .
The rating agency reports that, without access to the European Common Aviation Area after Brexit, the U.K.’s air traffic rights could become uncertain. An interruption to EU-U.K. air traffic lasting longer than three months would likely trigger negative rating actions (downgrades or revised outlooks) across S&P Global Ratings’ portfolio of rated U.K. airports.
Following Moorgate’s outreach, InfraNews, IPE Real Assets and Infrastructure Investor covered the news. Note that some articles appear behind paywalls.
Following extreme weather events last year, the international community has issued multiple calls to strengthen infrastructure against extreme weather events and the expected impact of climate change. Writing for the Cambridge Institute of Sustainable Leadership (CISL), Miroslav Petkov, Director, S&P Global Ratings explores the need for and potential rise of adaptation infrastructure finance.
Read the full article here
US infrastructure needs are enormous. Water, wastewater and irrigation systems alone require more than US$630bn of investment up to 2033 to bring them up to modern standards, according to Environmental Protection Agency estimates. Green finance could be used to help meet these substantial infrastructure requirements, writes Michael Ferguson, Director, S&P Global Ratings in Public Finance International.
To read the full article, please click here. (please note that the article is behind a paywall)
Green bonds represent a small share of bank borrowings globally. However, that proportion is expected to rise considerably in the coming years. Miroslav Petkov, Director in the Sustainable Finance Team of S&P Global Ratings, considers the recent – and future – growth of banks’ green issuance in Global Banking & Finance Review.
Read the full article here.
Before autonomous vehicles (AVs) become mainstream, changing public perceptions and further technological advances – not to mention further investment – are necessary.
In an article published in Automotive World, Kurt Forsgren, Nishit Madlali, and Lawrence Orlowski, S&P Global Ratings, discuss the potentially huge impact the AV industry could have on infrastructure investment. They explain that this potential disruption is hard to predict given recent setbacks, including a pedestrian fatality. However, should AVs exceed their expectations, and have a 30% share of light vehicle sales by 2030, the impact will be revolutionary.
Read the full article here (behind paywall)