Filling the funding deficit; the focus of S&P’s November Infrastructure Outlook

In Standard & Poor’s November edition Euro pictureof its Infrastructure Outlook newsletter – featuring all the key ratings updates and research relevant to infrastructure and project finance – Michael Wilkins, managing director, discusses the funding gap and financing surplus in EU infrastructure with industry experts. Together they explore the trend that despite there being record-low interest rates in the EU and the need to build and maintain infrastructure growing ever more apparent, governments do not seem to be taking advantage of the current market conditions. In agreement, the experts define austerity and affordability as the biggest barriers to investment.

The UK government, in particular, is struggling with the current deficit. Following an event hosted by the International Project Finance Association (IPFA), the National Audit Office (NAO) and S&P, this edition features an article on the growing ambition for new infrastructure investment in the UK. S&P’s Stefania Belisario continues the theme, also writing about the importance of infrastructure funding in Italy for their economic growth.

In other rating news, S&P has given solar power project Solaben Luxembourg a ‘BBB’ rating following its high availability levels, effective project management and limited maintenance risks. Meanwhile, S&P has lowered the Swedish-based utility Vattenfall rating to ‘BBB+’ due to difficult industry conditions and pressure on cash flows.

The feature also examines how environmental and climate risk factor into global corporate credit ratings.

To view the full version online, with accompanying videos, please click here.

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