project-finance-scorecard Market Intelligence /marketintelligence/en/campaigns/project-finance-scorecard content esgSubNav
Discover more about S&P Global’s offerings

Project Finance Scorecard

 

  • Project Finance Credit Assessment Scorecards
  • The Solution

Assess Project Finance Credit Risk

Project finance is a key financing vehicle, especially in times when there is a need for investment in infrastructure coupled with ever tighter government budgets.  Many market participants struggle to reliably evaluate the level of risk related to a project. The challenge comes from the inherent complexity of the asset class and its predominantly qualitative analysis, which is unique to each transaction, as well as availability of sufficient data to capture project defaults.

Assess Project Finance Credit Risk

S&P Global Market Intelligence’s Project Finance Suite provides a general framework for the analysis of Project Finance transactions, regardless of the industry or sector in which they operate, with the use of well-established project finance debt rating criteria. Project Finance Suite comprises Probability of Default (PD) and Loss Given Default (LGD) Scorecards that bring together statistically validated PD and LGD methodologies, quantitative and qualitative risk factors and market benchmarks to build a single, robust assessment framework helping you identify and manage Project Finance credit risks.

  • Project Finance Credit Assessment Scorecards
  • The Solution

Probability of Default Scorecard

  • Off-the-shelf, transparent, intuitive and user-friendly credit assessment framework for project finance analysts
  • Clear methodology to enhance/ complement cash flow- and simulation-based model assessment
  • High performance to help achieve accuracy and granularity
  • 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 Scorecard

  • Effective and robust solution in cases 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%.
  • Model produces an LGD point estimate which can be mapped to any discrete recovery rating scale
  • Internal and external data were used to test the Scorecard performance.

Implement with Confidence

  • Get in-depth credit training on the application of the Project Finance Suite and the methodology behind the scorecards
  • Harness the full power of the solution with year-round specialist support
  • Obtain transparent and in-depth model development and maintenance documentation to help meet regulatory requirements.

Factor ESG into your Credit Risk Analysis

Project Finance PD Scorecard is enhanced to include visualized Environmental, Social and Governance (ESG) analysis, which is part of a holistic approach to assessing credit risk.

ESG factors are considered in detail alongside the traditional credit analysis formalized in the Scorecards, enabling you to estimate the impact of ESG factors on credit risk while working through the regular credit assessment process.

Extensive Sector Coverage

  • Power

    Power generation, Photovoltaic solar, Solar Thermal, On-shore Wind, Off-shore Wind, Hydro, Biomass, Nuclear and Coal

  • Power Transmission

    Land based and Subsea

  • Oil and Gas

    Refining, processing, and liquefied natural gas (LNG), Pipelines and Storage

  • Transportation Infrastructure

    Roads, Bridges and Tunnels, Metros, Airports and Ports

  • Social Infrastructure, Accommodation, and Entertainment

    Education facilities, Health projects (hospitals and primary care facilities), Detention centers (prisons), Convention centers and stadiums and Data centers and archiving facilities

  • Industrial and other projects

    Mining, Chemical plants and Parking

Identify and manage potential default risks of rated and unrated companies, across a multitude of sectors.

Learn more about the Project Finance Scorecard

Request Follow Up

Insights

  • Case Study

    Project Finance Scorecard Case Study

    Read more

  • Blog

    Credit Risk and Infrastructure Issues: At the Crossroads of a Potential $15 Trillion Problem

    Read more

  • Blog

    Infrastructure Issues: Understanding and Mitigating Risks

    Read more

  • Blog

    Infrastructure Issues: Tools to Dig Deep on Potential Risks

    Read more

  • Case Study

    Global commercial bank gains efficiencies using tool to assess Project Finance

    Read more

  • Case Study

    A Bank Takes its Project Finance Assessments to a New Level

    Read more