Untitled Document
 

February 2019
 
 

What matters for infrastructure investors in 2019? With nationalist and populist movements rising, investors are navigating an environment of increased political risk. This may have repercussions for regulatory stability – and, ultimately, for sovereign credit quality.

At the same time, we see that environmental, social, and governance (ESG) matters are climbing the business agenda: investors’ mandates for companies seen to be acting sustainably are increasing.

Against this backdrop, our Global Infrastructure Finance Outlook keeps readers abreast of our most-read research from the past quarter – offering insights into how the Infrastructure segment is changing and, importantly, how it may yet evolve.


Headline Stories:

  • Industry Top Trends 2019: Utilities pg.6
  • Industry Top Trends 2019: Transportation Infrastructure pg.8
  • The Year of Refinancing Risk For China's LGFVs? pg.9
 
 

MULTIMEDIA
 
 
 

S&P Global Ratings Launches ESG Sections In Corporate Credit Rating Reports

S&P Global Ratings recently announced that it has started to include environmental, social, and governance (ESG) sections within its issuer credit rating reports on corporate entities. However, ESG has been at the heart of our credit ratings approach for many years. What we aim to do now is to more clearly highlight to industry bodies, investors, and stakeholders how we do so.


S&P Global’s Forecast For The Green Bond Market in 2019

S&P Global Ratings expects strong green bond market fundamentals to fuel a 8% increase in self-labeled instruments globally in 2019, despite a bearish global fixed-income market. Analyst Noemie de la Gorce explains what’s driving this growth and what to look out for.


Crisis In The West: California Utilities Under Fire

Analysts from the Global Infrastructure Corporate and Project Finance Ratings teams share their insights on the implications for suppliers due to the recent bankruptcy claim filed for the second time in 18 years by PG&E Corp., California’s largest utility. A company that is not alone in credit erosion due to claims arising from major fires attributed in part to climate change with downgrades at both Southern California Edison Co. and San Diego Gas & Electric Co.
 
 
 
 
 
 

OTHER TOP STORIES

California's 100% Renewable Mandate: A Greener Future For The Golden State
On the eve of the September 2018 Global Climate Action Summit in San Francisco, California Governor Jerry Brown unveiled a new gold standard for renewable energy in the U.S.: A mandate requiring the state to get 100% of its power from renewable energy sources by 2045. The announcement precipitated a chorus of praise from environmentalists, although even its most ardent supporters know that substantial political and technological challenges lie ahead. For one, there is the inherent reliability concerns of operating exclusively from intermittent resources. 


The Economic Benefits Of Tackling Global Warming
Climate change is no longer a problem for the future. It has already started to alter the functioning of our world. Every year seems to bring more climate-related shocks--such as floods, hurricanes, harsh winters, and hotter summers--that weigh on economic activity. As temperatures climb, the occurrence of natural disasters is set to rise: Recent research shows that under business-as-usual carbon emissions, the risk of extreme heatwaves and floods is likely to increase by 50% this century (Mann et al., 2018). This means the global economy will increasingly have to cope with the consequences of global warming.


RECENT RATING ACTIONS

EMEA

LATAM


GREEN EVALUATIONS

Ence Energia S.L.U awarded “E1” For Its Proposed €69.4 Million Multi-Tranche Capex Facility
Ence Energía S.L.U. is seeking to raise an expected €69.4 million to expand its biomass power generation business, through a combination of a second green debt facility and notes issuance.


Rhode Island Infrastructure Bank’s US$19.8 Million Revenue Bonds 2018 Awarded “E1"
Rhode Island Infrastructure Bank (RIIB) Efficient Buildings Fund is proposing to issue $19.8 million in Efficient Buildings Fund revenue bonds series 2018 A, green bonds. Our Green Evaluation reflects our view of the RIIB’s project and financing allocation and oversight. The bond proceeds will be used to refund the RIIB’s previously issued 2016 and 2017 Efficient Building Fund bond anticipation notes (BANs) and fund an additional loan. The series, including the refunding of the BANs, will fund energy saving or clean energy projects for municipalities within Rhode Island. In our opinion, this transaction is aligned with the Green Bond Principles (GBP) 2018.
 
 
 
 

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