S&P’s view on the impact of a potential rise in interest rates on project finance covered by the specialists

interestratesInvestor appetite for project finance has been insatiable during the recent years of low interest rates. Yet a new report by Standard and Poor’s Ratings Services suggests that the recent US interest rate hike could mark the start of a new wave of refinancing in the project bond market.

In the report, Michael Wilkins, Managing Director of Infrastructure Finance at Standard & Poor’s, explains that with Europe likely to follow suit, refinancing conditions for loans made and priced at the height of the global financial crisis are now ripe for capital market takeouts – due to the marked-to-market swap-rate adjustments by banks. Hence, the outlook for infrastructure investment is bright.

Following Moorgate outreach, the research was picked up by Institutional Asset Manager, while IJGlobal conducted an interview with Wilkins, which can be viewed here (note: article lies behind paywall).

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