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Indian Mining And Construction Equipment Industry: Monthly Updates: May2017        Indian Hotel Industry:May 2017: Monthly Updates        Definitive anti-dumping duty on hot-rolled and cold-rolled products likely to create a more stable operating environment for domestic flat steel players        Pace of volume growth slackened in a majority of sectors in April 2017, as pressure to meet year-end targets waned        GST Council’s decision on rate fitment for most goods and services paves way for GST implementation on July 1, 2017        New series indicates an improvement in industrial growth to 2.7% in March 2017 from 1.9% in February 2017        CPI inflation eased sharply to lower-than-expected 3.0% in April 2017, with broad-based dip in food inflation        New series indicates that WPI inflation recorded broad-based easing to 3.9% in April 2017 from 5.3% in March 2017        Indian Automobile Industry: Automobile Sales Update – April 2017: Monthly Update        Indian Automobile Industry – Two Wheelers: Two Wheeler Sector Posts Healthy Growth; Motorcycles Segment Turns Around After Five Month Of De-Growth Despite Higher Sales In March 2017 When Industry Was Transitioning To Bsiv Emission Norms: Monthly Update       
 
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Indian Mining And Construction Equipment Industry: Monthly Updates: May2017
Indian Hotel Industry:May 2017: Monthly Updates
Definitive anti-dumping duty on hot-rolled and cold-rolled products likely to create a more stable operating environment for domestic flat steel players
Indian Tractor Industry – Monthly Update
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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