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Indian Tractor Industry – Monthly Update        Indian Sugar Sector: De-growth in domestic sugar consumption in SY2017 unlikely to affect price and profitability        Indian Mortgage Finance Market Update for 9MFY2017: Affordable housing segment to remain key growth driver Performance Review of Housing Finance Companies and Industry Outlook        Indian Construction Sector: Revival of irrigation sector backed by adequate funding support is a credit positive for construction companies        Apparel And Fabric Industry: Apparel And Fabric Industry In Knots Over Sluggish Exports, Demonetisation Woes        Half of the available indicators recorded improvement in February 2017, while an unfavourable base led to deterioration in some of the other indicators        Telecom Tower Sector: Growing Data Tenancies And Strong Financial Position Are Positives Despite Headwinds From Stress In Telecom Sector        INR rises to 16-month high on risk-on sentiment, lower crude prices; global risks, domestic earnings to dictate outlook        Indian Steel Industry: Sluggish domestic demand weighs down on steel prices        Indian Corporate Sector: Trends & Outlook       
 
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Indian Sugar Sector: De-growth in domestic sugar consumption in SY2017 unlikely to affect price and profitability
Indian Tractor Industry – Monthly Update
Half of the available indicators recorded improvement in February 2017, while an unfavourable base led to deterioration in some of the other indicators
Indian Construction Sector: Revival of irrigation sector backed by adequate funding support is a credit positive for construction companies
More...
 
PROJECT FINANCE RATING

The envisaged demand for private-sector investments in infrastructure projects, particularly in the energy and road sectors, suggests considerable potential for adequately structured project finance transactions. Growth in such transactions would also be driven by the inability of many potential project sponsors to implement such capital intensive and highly leveraged projects on their balance sheets, without having their own credit risk profile materially impacted. Project financing usually involves setting up of a Special Purpose Vehicle (SPV), bound by a contractual matrix to various project participants, which raises debt and services it from its own cash flows, without recourse to its sponsors. ICRA's Rating approach emphasises the importance of carefully assessing the risks that characterise such transactions and suitably structuring the projects to mitigate the risks. It may be noted that if a project entity proposes to issue a debt instrument that requires a Credit Rating, ICRA would assign a Credit Rating on its conventional Credit Rating scale. The Project Finance Rating (PFR) service is essentially a project risk assessment exercise (with a separate PFR Rating scale) that may be useful to the project entity and its  lenders/investors. ICRA would also provide a detailed assessment report on the project without assigning a formal PFR if lenders/project entities require only that. The Rating methodology involves an assessment of three broad areas:

Sponsor strength
Project risks
Cash flow adequacy

The Benefits

For lenders, typically financial intermediaries like banks and financial institutions, ICRA's PFRs would:

Facilitate informed decision-making
Provide an independent and reliable second opinion
Assist in risk pricing
Facilitate portfolio risk management
Help meet specific investment objectives

For borrowers, ICRA's PFRs may help to:

Increase the comfort level with prospective/existing lenders and enhance marketability to various lenders
Reduce the time involved in obtaining loan approval

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