S&P talks regulatory and political risk in Infrastructure Investor’s 2015 industry journal

Infrastructure Investor’s journal, Infrastructure Risk Management: Assessing and managing dynamic exogenous risk, boasts chapter contributions from a variety of industry specialists, including Michael Wilkins, Managing Director of Infrastructure Finance Ratings at Standard & Poor’s.

His chapter, Assessing the credit implications of regulatory and political risk in infrastructure, explains that global infrastructure firms, and the projects in which they are involved, all face significant exposure to regulatory and political risk. As such, the aim of the chapter – which offers a plethora of notable examples and case studies – is to explore the key drivers of such risk with regards to infrastructure and project financings, analysing their impact on creditworthiness and, consequently, S&P’s ratings.

Wilkins reveals that the ways in which these risk factors affect the creditworthiness of such firms are diverse and complex, partly because governments adopt a variety of roles in global infrastructure, including regulator, investor and counterparty. Looking forward, he explains that as markets adapt through the years, so too will the complex interactions between governments and private infrastructure firms.

The full chapter can be viewed on S&P’s Global Credit Portal here. Alternatively, a PDF version can be viewed here.

This chapter is published in Infrastructure Investor’s Infrastructure Risk Management guide. Please click here for a link to their web page.

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