Do you have the right tools to assess your Project Finance credit risk?

Project finance plays a vital role in funding large scale infrastructure projects and is a critical tool in green financing and the energy transition. A key challenge credit risk professionals face is assessing the creditworthiness of project finance transactions with lack of extensive default data needed to build complex credit risk statistical models.

S&P Global Market Intelligence’s Project Finance Suite provides a general framework for the analysis of Project Finance transactions, across a range of sectors and geographies, with the use of well-established project finance debt rating criteria developed by S&P Ratings and 20 plus years of global market experience.

The Project Finance Credit Assessment Scorecards capture atypical structures, have the ability to assess 100 plus different project types and run Probability of Default (PD) assessments from preliminary stage through the whole life cycle of a project.

Probability of Default (PD) Scorecard

Sound and Proven Methodology

Industry leading methodology with dynamic interrelationships between qualitative and quantitative factors. The mechanics of the scorecard allow for a dynamic relationship between inputs and refinement of the assessment.

Greater Robustness

Ability to generate a consistent and accurate score following a guided approach that allows qualification of inputs and consistency in the analytical approach.

Guaranteed Transparency

The scorecard is an off-the-shelf complete solution that allows for a “glass box” inside and understanding of inputs and outputs.

Historic Data

Calibrated to PDs calculated using the data from S&P Global Ratings proprietary default database accumulated since 1981^[1].

^{[1] S&P Global Ratings does not contribute to or participate in the creation of credit scores generated by S&P Global Market Intelligence.}

Loss Given Default (LGD) Scorecard

The Loss Given Default (LGD) Scorecards can be supplemented with the Probability of Default (PD) scorecard, bringing together statistically validated PD and LGD methodologies and market benchmarks to build a single, robust assessment framework helping you identify and manage Project Finance credit risks.

Effective and robust solution

Where there is no sufficient data to build a purely statistical model.

Significant savings in regulatory capital

Average LGD estimates for most portfolios are considerably below 45%.

Map to any Rating scale

Model produces an LGD point estimate which can be mapped to any discrete recovery rating scale.

Internal and external data

Used to test the Scorecard performance.