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S&P Global asks: Can UK project finance endure Brexit’s economic woes?

MichelaA new report released by S&P Global Ratings outlines the potential effects of Brexit on financing the UK’s infrastructure projects. The report, ‘Brexit Woes Are Unlikely To Hamper Stability Of UK Project Finance Ratings’, suggests that S&P’s portfolio of over 50 rated transactions and private finance initiative (PFI) projects should remain resilient in the face of an economic downturn.

S&P Global notes that risks of a higher inflationary environment and overall weaker GDP growth has, however, cast doubts. For example, the outlooks of five UK project finance rated transactions have been downgraded from ‘stable’ to ‘negative’ due to heightened counterparty risk as the outlooks on the majority of UK domestic banks have been similarly revised.

As a result of Moorgate’s outreach, the report’s findings were picked up across the specialist infrastructure and financial press, including Infrastructure InvestorFTSE Global Markets, and Partnerships Bulletin (note: some of these magazines require a subscription).

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