In its “Industry Top Trends 2019” reports for North America’s regulated utilities and merchant power, S&P Global Ratings found that the utility sector’s credit outlook is stable – with both regulated providers and independent power producers likely to see low levels of growth next year.
The reports also found that North American utility industry weaker credit measures from tax reform will likely persist in 2019, reflecting tax-related rate reductions carryovers. However, some utilities will likely offset this reduced revenue with further equity infusions or asset sales.
Following Moorgate’s outreach, Utility Dive covered the news
In a major push to expand client services, RedRidge Diligence Services has appointed Allison Winchester as an Associate Director.
Located in Chicago, she will be responsible for overseeing scoping and budgeting, as well as scheduling lender diligence field exams both domestically and abroad.
Following Moorgate’s outreach, the news was covered by: Global Banking and Finance Review, Business Money, Private Equity Wire, ABL Advisor, and Trade Finance Global.
Bank Leumi (UK) has appointed Andy Mallin as its new Chief Business Officer. Formerly Divisional Head of Real Estate Finance at Santander, Andy has over 20 years’ experience in corporate and commercial banking, and will report directly to Leumi (UK)’s CEO, Gil Karni.
In his new role, Andy will head activity across Leumi (UK)’s various business lines in order to develop an already strong existing business.
Following Moorgate’s outreach, the news was covered by: Trade and Export Finance, TXF, Business Money, Jewish News, Trade Finance Analytics, Global Banking and Finance Review, and Specialist Banking.
In September 2018, now-outgoing California Governor Jerry Brown signed SB100: a mandate to keep California on a path to deriving 100% of its power from clean sources by 2045. In an article for Utility Dive, S&P Global Ratings’ Michael Ferguson explains how this may mean significant credit implications for the state’s power generators.
Undeniably, SB100 is a boon for renewable energy assets in California. But it’s a mistake to consider these benefits to be mutually interchangeable — instead some assets stand to benefit more than others.
Ferguson writes: “While SB100 will naturally benefit existing solar and wind power, less obvious is by how much and when. Both asset types represent most renewable installations in the Golden State. Yet they are by no means immune from risk.”
Read the article here.
A changing geopolitical landscape could adversely affect traffic volumes in the transportation infrastructure sector, as U.S.-China trade tensions escalate and Brexit approaches.
S&P Global Ratings’ analysts recently spoke to Drew Campbell, i3 senior editor, IREI, about the ramifications for transportation assets.
Specifically in the case of Brexit, one possible outcome is increased spending to balance any downside. S&P’s analysts respond: “As U.K lawmakers attempt to offset the prospects of slower economic growth following Brexit, investment in infrastructure could accelerate.”
Read the article here
With Brexit fast approaching and merger and acquisition (M&A) activity on the rise, S&P Global Ratings’ senior director, Julyana Yokota, explores what 2019 may have in store for airport operators.
The primary consideration is Brexit. “Questions remain over how the impact of Brexit could hinder traffic growth – most notably for UK airport operators,” writes Yokota.
M&A activity continues to represent a key trend. In France, for instance, a recent law has permitted the sale of stakes in Aerports de Paris – the operator of the Charles de Gaulle and Orly airports. France-based infrastructure group Vinci, which currently holds an 8% stake in ADP, is keen to pursue this opportunity.
Read the article here
In the way that “Insurtech” and “Regtech” have developed in recent years, a new wave of fintech is trending – that of “Tradetech”. Trade Finance Global investigates the Top 40 rising fintechs supporting international trade.
What is “Tradetech”?
As cross-border trade has digitalised, so an ecosystem has built up to support it – especially with respect to trade and supply chain finance, although also around logistics and in connecting key parties in the cross-border supply chain. Given this, the Tradetech 40 for the first time brings together this rising fintech sector’s leading companies and initiatives – representing every aspect of the technological advances being made to support today’s international trade.
The Tradetech 40 includes names that are instantly recognizable – such as Demica, Finastra (a merger of D+H and Misys) and China Systems. Yet it also includes initiatives such as Marco Polo (a trade network connecting banks, corporates and third party providers) as well as relatively new players such as Tradeteq (a trade finance assets marketplace) and TradeLens (a blockchain based platform jointly developed by Maersk and IBM).
The Tradetech 40 looks across the sector – grouping the companies and initiatives by their offering into five categories. These are: IT systems, asset distribution platforms, supply chain finance platforms, blockchain initiatives and those aiding the digitalisation of trade.
Click here to read the full article.
S&P Global Ratings has published two comprehensive studies of defaults and recoveries in the infrastructure sector.
The first report found that infrastructure sector experienced net positive rating movements in 2017, with 114 upgrades and 87 downgrades – reversing the negative trends seen in 2015 and 2016.
The second report, which explores defaults and recoveries between 1995 and2016, found that the 10-year cumulative default rate for unrated project finance bank loans was 6.3%, though this figure drops to 5.85% when only core sectors are considered. The default rate is lower still for public-private partnership (PPP) projects, including the U.K.’s PFI scheme (5.6%), which according to S&P demonstrates these schemes’ comparatively lower-risk nature.
The same report also concluded that the annual default gap between OECD and emerging markets has narrowed over the past decade – a probable result of the financial crisis, which affected advanced economies more.
Following Moorgate’s outreach, Global Capital, Project Finance International, and TXF covered the news (these items sit behind paywalls).
In an article for Trade Arabia, Olivier Paul, Head of Policy at the International Chamber of Commerce (ICC) Banking Commission, discusses the growing digitalisation of trade finance.
With a particular focus on trends in the Middle East and building on results from the ICC’s 10th Global Survey on Trade Finance, Paul explains that banks in the region are especially optimistic about the move towards paperless trade, despite lingering concerns relating to regulatory inconsistencies, for example.
To read the full article, please click here.
The fintech landscape in the Middle East is gathering pace: the number of fintech startups in the region is predicted to reach 250 by 2020, and investment in technology-based initiatives and fintech developments is also on the rise. With both the market and client requirements evolving, Bana Akkad Azhari, Head of Relationship Management MEA & CIS, Treasury Services, BNY Mellon, discusses how banks in the region must ensure they are able to adapt to the increasingly digital environment, and are equipped to deliver the technology capabilities needed to enhance trade for clients across the Middle East.
To read the full article, please click here