5% Asia-Pacific infra firms witnessed high exposure to COVID-19 disruptions
ECONOMY & POLICY

5% Asia-Pacific infra firms witnessed high exposure to COVID-19 disruptions

Photo: Business Today

Barely 5 per cent of the rated project and infrastructure companies in Asia Pacific have high exposure to coronavirus disruptions, Moody's Investor Service said on Wednesday.

Pressure has eased for Chinese toll roads, while a small number of utilities face moderate exposure, it said.

A high proportion (67 per cent) of rated project and infrastructure companies in Asia Pacific continue to have low exposure to the coronavirus-related disruptions, supported by their essential nature and predictable cashflows, Moody's Investors Service said in a statement.

"The number of companies with high exposure has reduced in recent months, particulary the Chinese toll road sector following the end of the toll-free period and with recovering traffic volumes," said Arnon Musiker, senior vice president and manager at Moody's.

Airports now make up most of the high exposure category, he said.

Whereas Moody's in April estimated 9 per cent of project and infrastructure companies had high exposure to coronavirus disruptions, this number has now declined to 5 per cent.

"On the other hand, a small number of power utilities now have moderate exposure to coronavirus disruption, given rising pressure from falling power prices and lower demand, which is only partly offset by lower fuel costs," the statement said.

Following the reclassification of these toll roads and utilities, the number of companies with moderate exposure has increased to 28 per cent from 23 per cent in April.

"Moreover, a limited number of projects with exposure to commodity risk - particularly energy-related - also face rising challenges following the recent material fall in oil, gas and coal prices," Musiker said.

Still, the majority - 67 per cent - of companies face low exposure, and include regulated utilities, projects and public-private partnerships, the statement said adding, this risk exposure for regulated networks remains low notwithstanding temporary tariff relief measures instituted by certain companies, given their temporary nature and immaterial effect on metrics.

The news has been originally shared by www.businesstoday.in, titled ‘Only 5% Asia Pacific infrastructure firms witnessed high exposure to COVID-19 disruptions: Moody's', on June 3, 2020. We have referred to the original article by the publisher with modified Title to suit our industry audience. To access the original article, click on the following: https://www.businesstoday.in/current/world/only-5-asia-pacific-infrastructure-firms-witnesses-high-exposure-to-covid-19-disruptions-moodys/story/405820.html

Photo: Business TodayBarely 5 per cent of the rated project and infrastructure companies in Asia Pacific have high exposure to coronavirus disruptions, Moody's Investor Service said on Wednesday.Pressure has eased for Chinese toll roads, while a small number of utilities face moderate exposure, it said.A high proportion (67 per cent) of rated project and infrastructure companies in Asia Pacific continue to have low exposure to the coronavirus-related disruptions, supported by their essential nature and predictable cashflows, Moody's Investors Service said in a statement.The number of companies with high exposure has reduced in recent months, particulary the Chinese toll road sector following the end of the toll-free period and with recovering traffic volumes, said Arnon Musiker, senior vice president and manager at Moody's.Airports now make up most of the high exposure category, he said.Whereas Moody's in April estimated 9 per cent of project and infrastructure companies had high exposure to coronavirus disruptions, this number has now declined to 5 per cent.On the other hand, a small number of power utilities now have moderate exposure to coronavirus disruption, given rising pressure from falling power prices and lower demand, which is only partly offset by lower fuel costs, the statement said.Following the reclassification of these toll roads and utilities, the number of companies with moderate exposure has increased to 28 per cent from 23 per cent in April.Moreover, a limited number of projects with exposure to commodity risk - particularly energy-related - also face rising challenges following the recent material fall in oil, gas and coal prices, Musiker said.Still, the majority - 67 per cent - of companies face low exposure, and include regulated utilities, projects and public-private partnerships, the statement said adding, this risk exposure for regulated networks remains low notwithstanding temporary tariff relief measures instituted by certain companies, given their temporary nature and immaterial effect on metrics.The news has been originally shared by www.businesstoday.in, titled ‘Only 5% Asia Pacific infrastructure firms witnessed high exposure to COVID-19 disruptions: Moody's', on June 3, 2020. We have referred to the original article by the publisher with modified Title to suit our industry audience. To access the original article, click on the following: https://www.businesstoday.in/current/world/only-5-asia-pacific-infrastructure-firms-witnesses-high-exposure-to-covid-19-disruptions-moodys/story/405820.html

Next Story
Technology

AirBrick Infra Sets Rs 1 billion Target, Expands to Dubai and Tier-II Cities

AirBrick Infra, one of India’s fastest-growing AI-led commercial interior design and build firms, has announced a sales order target of Rs 1 billion for FY 2025–26. The projection represents a 50 per cent growth over the previous fiscal year and reflects rising demand, increased repeat business, and the company's robust tech-first delivery model.  Now in its third year of operations, AirBrick continues its rapid scale-up, having successfully delivered over 70 projects spanning 3 lakh sq ft in FY 2023–24. FY 2024–25 witnessed the onboarding of several Fortune 500 clients, sett..

Next Story
Resources

Virtusa Foundation Powers Green Education Drive in Bengaluru

The Virtusa Foundation, CSR arm of digital engineering and technology leader Virtusa Corporation, has announced key infrastructure and mobility initiatives at the Ramakrishna Mission, Shivanahalli, Bengaluru. The launch marks the inauguration of a 16-room residential facility for lady teachers and the deployment of two solar-powered electric buses, underscoring Virtusa’s commitment to its core pillars of Education, Environment and Empowerment (3Es).  Located on the forest fringe near Bannerghatta National Park, the initiative supports tribal and underserved communities, complementi..

Next Story
Infrastructure Urban

Godrej Enterprises Drives India’s Smart Green Logistics Shift

As India accelerates its transformation into a global manufacturing and logistics hub, Godrej Enterprises Group (GEG) is taking the lead with its smart, sustainable intralogistics solutions. Through its Material Handling Equipment (MHE) and Storage Solutions businesses, GEG is redefining operational efficiency in modern warehouses and factories using IoT, automation, and AI. GEG has consistently maintained a 20–25 per cent market share in the intralogistics sector over the past three years. Today, over 37 per cent of GEG’s revenues come from its Good & Green portfolio, and its net..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?