Credit rating giant Moody’s Analytics has changed its project finance ratings methods for rating generic project financings that are not covered by an existing specialty project finance or infrastructure methodology. The change in project finance ratings methods is the first since December 2010. The update incorporates refinements to the scorecard, including some small changes in weights and thresholds. The update offers a more transparent disclosure of considerations behind the ratings.
Project Finance Ratings Methods Change
Project Finance ratings methodologies have been updated by Moody’s Investors Services has updated its methodology for rating generic project finance issuers that are not covered by an existing specialty project finance or infrastructure methodology, replacing the last version published on 20 December 2010. The update incorporates refinements to the scorecard, including some small changes in weights and thresholds. The update also provides a more transparent presentation of the rating considerations that are usually most important for issuers in this sector. No rating changes are expected to result from this update.
The change in methodology applies to special purpose entities (SPEs) financed with non-recourse project financing basis whose primary business purpose is limited to one activity, which is the project financing. Project financings covered by this methodology encompass a broad range of asset types, including, but not limited to:
- oil and gas production
- chemical storage projects
- liquefied natural gas (LNG) facilities
- water & wastewater plants
- desalination plants
About Moody’s Investor Service & Moody’s Analytics
First used in 1299 to finance English silver mines, project finance hasn’t changed much. Project finance lenders haven’t changed much in 700 years. What has changed is the advent of providers like Moody’s Analytics who today substantially reduce project finance risk. Moody’s risk advisory services offers unique tools and best practice guides for measuring, managing and allocating project finance risk. Their credit risk advisory services enable faster, better informed credit decisions through a holistic and consistent assessment of project finance risk.
Moody’s Investors Service is one of the world’s leading providers of credit ratings, research and risk analysis, covering more than 135 sovereign nations, 11,000 structured finance transactions, and more than 1,000 infrastructure and project finance issuers.
Moody’s Analytics is one of the world’s leading providers of credit risk advisory services, credit assessment and origination services, credit data services and project finance risk rating services. Their deep risk expertise, expansive information resources, and innovative technology applications combine to provide credit assessments and credit ratings to minimize and manage project finance risk.
Moody’s industry-leading financial intelligence and analytics tools comprised of research, data and professional services offer integrated risk management solutions for project financing and well as ongoing risk management assessments and credit monitoring solutions.
