KBRA expects a generally more favourable environment for European project finance and infrastructure (PF&I) credit quality in 2025, characterised by a supportive policy environment, slightly improved economic conditions with a relative softening in commodity prices (despite continued volatility), and ongoing reliance on PF&I as a funding tool to support the energy transition and digital sector. KBRA affirmed the majority (91%) of its European PF&I credits over the year. For next year, we anticipate continued ratings stability in the sector and further significant investment in energy transition-related asset classes, including traditional renewables such as onshore wind and solar as well as sectors such as offshore wind. This Outlook also considers the notable investment growth in newer PF&I asset classes, such as data centres, battery storage, and electric vehicle charging, which are supported by significant private and public funding sources.
While European…