+
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
Real Estate

Shriram Properties Launches ‘Codename: The One’ in Bengaluru

Shriram Properties (SPL), a leading real estate developer focused on the mid-market and mid-premium segments, has announced the launch of its latest residential project under the banner “Codename: The One” in Bengaluru’s Electronic City corridor. This feature-rich gated community will offer 340 spacious 2- and 3-BHK residences, with a total saleable area of approximately 5 lakh square feet and an estimated revenue potential of over Rs 3.5 billion. The project is expected to be developed over a span of more than three years.  Strategically located near the Bommasandra Metro stat..

Next Story
Resources

India Warehousing Show 2025 Closes with Strong Global Presence

The 14th edition of the India Warehousing Show (IWS) 2025 concluded successfully at Yashobhoomi (IICC), Dwarka, drawing participation from over 300 exhibitors across 15 countries and welcoming 15,000+ visitors. Recognised as India’s leading platform for warehousing and logistics excellence, IWS 2025 offered a comprehensive display of cutting-edge automation, sustainable warehousing solutions, and next-gen supply chain technologies. The show was inaugurated by Shri Pankaj Kumar, Joint Secretary – Logistics, DPIIT, Ministry of Commerce and Industry, Government of India. In his opening a..

Next Story
Equipment

MHIET Launches 450kW Gas Cogeneration System with H₂ Co-Firing

Mitsubishi Heavy Industries Engine & Turbocharger (MHIET), part of the Mitsubishi Heavy Industries Group, has launched a new 450kW gas cogeneration system, the SGP M450, jointly developed with Toho Gas Co.,. The system supports hydrogen co-firing at up to 15 vol per cent, with no loss in performance or reliability.  The system is currently available in the Japanese market, and has been developed from the existing GS6R2 city gas engine platform. Key modifications were made to the fuel gas and engine control systems to enable hydrogen co-firing.   Verified through de..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?