As the US PPP market expands and diversifies, the new asset types, financing and project structures we see are introducing new risks. Many projects in construction are materially delayed while others face challenges transitioning into operations, triggering contractual default thresholds. Some projects face rising construction costs, skilled labor shortages and a higher cost of capital in a rising interest rate environment.
Financing and project structures are weakening, yet public bond offerings continue to be oversubscribed due to high demand for a limited number of projects that reach financial close each year. Does the pricing achieved by PPPs reflect the risks of the PPP project or market dynamics? Will this corrector continue indefinitely?
On December 6th, Moody's Annual PPP and Project Finance Conference 2018 brings together industry thought leaders and Moody’s senior analysts across multiple sectors to engage in discussions on current events and trends.
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