Fitch: 2015 Mid-Year Outlook Stable for Thermal, Renewable and Oil & Gas Projects
07 July 2015 - 8:16AM
Business Wire
The mid-year 2015 outlook for thermal, renewable and oil and gas
projects is stable, according to a new Fitch Ratings report.
Most thermal projects have fixed-price tolling agreements that
mitigate market and fuel price volatility. Projects exposed to
operational or market price volatility greater than those modeled
in Fitch's rating cases could be subject to downward rating
pressure.
Renewable energy projects benefit from fixed-price revenue
contracts to avoid price risk, but resource risk remains. Early
results from recently completed solar projects are consistent with
base case expectations, while most wind projects remain more
volatile than originally expected but supportive of current
ratings.
Liquefied natural gas (LNG) export terminals feature strong
contracts to mitigate completion, price and volume risks, while
lower oil prices have changed competitive dynamics. Other commodity
production facilities under development are often subject to
feedstock and commodity price risk and rely on structural
enhancements to mitigate volatility.
The full report, titled '2015 Outlook: Energy Infrastructure
North America,' is available www.fitchratings.com.
Additional information is available at
'www.fitchratings.com'.
2015 Midyear Outlook: Energy Infrastructure North America
(Stable Cash Flows Consistent with Expectations)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=868163
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Fitch RatingsAndrew Joynt, +1-415-732-5622DirectorFitch Ratings,
Inc.650 California St.San Francisco, CA 94108orGregory Remec,
+1-312-606-2339Senior DirectororJustin Wu, +1-415-732-5612Associate
DirectororMedia RelationsSandro Scenga, New York,
+1-212-908-0278sandro.scenga@fitchratings.com