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
Resources

KEC International Wins New Orders worth Rs. 12.36 Billion

KEC International, a global infrastructure EPC major and an RPG Group Company, has secured new orders worth Rs. 12.36 billion (bn) across various sectors.Transmission & Distribution (T&D):KEC has secured transmission line and substation orders in the Middle East (UAE and Kuwait) and a substation order from a private TBCB player in India.Civil:A residential project order from a leading private developer in Western India strengthens KEC’s presence in the civil sector.Transportation:The company has also secured an order in the prestigious Train Collision Avoidance System (TCAS) segment ..

Next Story
Infrastructure Urban

Finance Minister to Launch NITI NCAER States Economic Forum Portal

Union Finance Minister Nirmala Sitharaman is set to launch the "NITI NCAER States Economic Forum" portal on 1st April 2025 in New Delhi. Developed collaboratively by NITI Aayog and the National Council of Applied Economic Research (NCAER), the portal will serve as a comprehensive repository of economic, social, and fiscal data spanning over 30 years (1990-91 to 2022-23). Key Features of the Portal The platform is structured into four main components: State Reports: Provides macro and fiscal overviews of 28 Indian states, featuring data on demography, economic structure, socio-economic indic..

Next Story
Infrastructure Energy

IREDA’s Loan Sanctions Surge 27% to Rs 474.53 Bn in FY 2024-25

The Indian Renewable Energy Development Agency Limited (IREDA) has reported a 27% increase in loan sanctions, reaching Rs 474.53 billion for FY 2024-25, as per provisional data. Loan disbursements also saw a 20% rise to Rs 301.68 billion, up from Rs 250.89 billion in the previous fiscal year. Additionally, the outstanding loan book expanded by 28%, standing at Rs 762.5 billion as of March 31, 2025, compared to Rs 596.98 billion in FY 2023-24. IREDA’s Commitment to Renewable Energy Growth Shri Pradip Kumar Das, Chairman & Managing Director, IREDA, emphasized the company’s commitment to t..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?