With only weeks to go before the UK decides on the future of its EU membership, S&P Global Ratings has weighed in on the Brexit debate, specifically by looking at the possible impact on the country’s infrastructure. Built on findings from a survey of 51 institutional investors, its new report, ‘Post-Brexit, Long-Term Funding Is UK Infrastructure Investors’ Biggest Concern’, reveals that the greatest concern from investors is, above all, currency volatility.
Additionally, Michael Wilkins, lead author of the report and managing director of infrastructure finance ratings at S&P Global, notes that investors found political instability and macroeconomic turbulence – a likely fallout of a Brexit – as significant hindrances to further infrastructure investment for at least two years after the vote. This is because high-levels of uncertainty mean long-term planning becomes especially difficult. However, opportunities to find higher returns in a riskier financing environment may spur some unexpected investment activity, according to some survey participants.
After Moorgate’s targeted media campaign, news of the report and its findings was covered by the financial and specialist press, including Infrastructure Intelligence, Infrastructure Investor (subscription required), Investment & Pensions Europe, FTSE Global Markets, Funds Europe, Private Equity Wire, Institutional Asset Manager, and the June edition of Global Treasury Insights.