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
Infrastructure Transport

Bengaluru Unveils Rs 1,200 Bn Infra Upgrade Plan

Bengaluru is set to receive a massive infrastructure boost worth Rs 1,200 billion under new projects planned by the Karnataka government to enhance urban mobility and connectivity. The initiative includes the expansion of the city’s metro network, construction of tunnel roads, elevated corridors, and 500 km of white-topping works to improve road durability. The Bruhat Bengaluru Mahanagara Palike (BBMP) and Bengaluru Metro Rail Corporation Limited (BMRCL) will jointly execute the projects. Key projects include tunnel roads between Hebbal and Mekhri Circle, 25 new signal-free corridors, and ..

Next Story
Infrastructure Transport

Cochin Shipyard delivers first indigenous ASW vessel ‘Mahe’ to Navy

Cochin Shipyard Limited (CSL) has delivered INS Mahe, the first indigenous Anti-Submarine Warfare Shallow Water Craft (ASW SWC), to the Indian Navy. The vessel is part of an eight-ship series being constructed under the Navy’s “Atmanirbhar Bharat” initiative to strengthen coastal defence capabilities. Designed and built entirely in India, Mahe features advanced sensors and weapon systems for detecting and neutralising underwater threats in coastal waters. The vessel underwent extensive sea trials before delivery, demonstrating high performance and manoeuvrability. This milestone reinfo..

Next Story
Infrastructure Urban

Vedanta Group to invest Rs 1,000 billion more in Odisha projects

Vedanta Group has announced an additional investment of Rs 1,000 billion in Odisha to expand its operations across metals, energy, and downstream industries. Anil Agarwal, Chairman, made the announcement during the third edition of the Make in Odisha conclave, highlighting the state’s pivotal role in India’s industrial growth.The investment will focus on strengthening Vedanta’s aluminium and copper businesses, establishing new value-added facilities, and boosting employment in the region. The company already operates large-scale plants in Jharsuguda and Lanjigarh, contributing significan..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?