INFRASTRUCTURE SECTOR

Overview



CareEdge Global Infrastructure Sector Ratings encompass ratings assigned to debt programs of issuers in various infrastructure-related sectors. These sectors include Energy generation and transmission, Transportation (including Roads, Railways, Airports, Ports etc.), Information and Communications Technology (Telecom and Data Centers), and Utilities (both government and private)

The rating process includes evaluating the fundamental viability of the project being financed. It also involves a thorough analysis of the political, legal, and regulatory environment impacting the sector, as well as the contractual framework for risk mitigation.

Factors Used for Rating

Our rating process is meticulous and considers multiple factors to ensure an accurate assessment of each project’s creditworthiness. Key factors include:

  1. Project Viability: Analysis of the project’s feasibility, including technical, financial, and environmental aspects.
  2. Financial Strength: Evaluation of the project’s financial structure, including debt levels, revenue streams, and profitability.
  3. Sponsor Strength: Assessment of the project’s sponsors Trak record and financial strength, operational performance, management quality, and maintenance practices.
  4. Regulatory Environment: Examination of the regulatory framework governing the project, including compliance with local and international standards.
  5. Market Position: Analysis of the project’s competitive position within the market, including demand-supply dynamics and market share. Alternative routes in transportation project is also analysed. 
  6. Economic Impact: Consideration of the project’s broader economic impact, including job creation, economic growth, and community benefits.
  7. Risk Management: Evaluation of the project’s risk management strategies, including mitigation plans for potential risks.

Credit enhancement Mechanism: Additionally, the ratings process assesses specific credit enhancement mechanisms and structuring put in place for safeguarding the investors interest. 

Our ratings provide a clear and comprehensive view of the creditworthiness of infrastructure projects, helping investors make informed decisions.