Dec 14 - Following a number of enquiries from investors about the potential credit effects of the U.K. government’s revised model for infrastructure financing, Private Finance 2, Standard & Poor’s Ratings Services has published a Credit FAQ titled “Potential Credit Effects Of The U.K. Government’s New Plan For Project Finance: Private Finance 2.”
In this Credit FAQ, we address the following questions:
-- How does Standard & Poor’s currently rate PFI projects?
-- What’s the current credit profile of rated PFI projects in U.K.?
-- How will PF2 allocate project risks, compared with PFI?
-- What will be the credit effects of proposed changes to both soft and hard FM services?
-- How will these changes affect project relationships?
-- Will the government’s equity stake in the PF2 model affect Standard & Poor’s project finance ratings?
-- Will the public sector equity stake mean that Standard & Poor’s assesses PF2 projects as government-related entities?
-- Will these capital changes lead to higher ratings for PF2 projects?