Moody's Investors Service's has predicted a stable outlook for Europe, the Middle East and Africa (EMEA) private finance initiative (PFI) and public--private partnership (PPP) projects.
The rating agency has held a stable outlook on the sector since 2009. Adam Muckle, an Analyst in Moody's Infrastructure Finance Group and author of the report titled "EMEA Public Private Partnerships (PPPs) 2016 Outlook-Stable Outlook Reflects Resilient Project Cash Flows", stated:
"Although the performance of our rated portfolio is generally stable, exceptional events have negatively affected some projects and fire safety related building deficiencies have led to multi-notch downgrades in 3 of our UK PFI hospitals."
According to the rating agency PPP procurement trends vary across Europe, with procurement in some Western European countries subdued, whereas other countries are seeing a growing pipeline of projects. It is expected that the European Commission's Investment Plan for Europe, Juncker Plan, could increase investment in markets such as Central and Eastern Europe.
Debt margins in the EMEA are declining due to intense competition. Bond market investment in PPP grew in 2014, but now it has abated due to the fact that banks have reclaimed market share. Additionally, external actions such as European Commission initiatives could boost future investment.
Moody's report "EMEA Public Private Partnerships (PPPs) 2016 Outlook-Stable Outlook Reflects Resilient Project Cash Flows" is now available on the link provided below: