Contrary to previous crises, the project finance and infrastructure sector has been affected in multiple ways by the coronavirus pandemic through unprecedented traffic declines, continuing negative impact on projects in construction and a weakening credit quality of sub-sovereign off-takers. Many issuers in the sector have been immediately hit with lost revenue, increased expenses, and liquidity pressures. The longer term credit impact is developing and will be influenced by the magnitude and duration of the outbreak, as well as offsetting mitigating factors.
- Global credit impact of the Covid-19 outbreak in project finance and infrastructure
- Sectors most affected and least affected
- Sub-sovereign credit situation
- Air travel infrastructure issuers: assumptions with respect to pace of recovery, liquidity analysis, what the metrics will look like in 1-3 years
- Projects in construction: delays due to covid-19; who bears the risk?
- Mike Mulvaney, Managing Director, Public Project & Infrastructure Finance
- Catherine Deluz, SVP, Public Project & Infrastructure Finance
- Rebecca Adair, VP-Senior Analyst, Public Project & Infrastructure Finance
- Michael Yake, VP-Senior Credit Officer, Sub-Sovereign