Project Finance & Infrastructure: Infrastructure Global Rating Methodology

Methodology Scope

This report describes Kroll Bond Rating Agency LLC and its rating affiliates’ (collectively, “KBRA”) infrastructure global rating methodology. The methodology will be used to determine issuer ratings for infrastructure companies as well as ratings on their debt issuance. Infrastructure companies generally provide, or facilitate the provision of, fundamental public services that are subject to significant regulatory oversight. Infrastructure assets also tend to have high capital expenditure and lifecycle cost requirements. As a result, infrastructure companies often benefit from meaningful barriers to entry and enjoy monopolistic or quasi-monopolistic positions. The regulatory and competitive environment, along with limitations that may be imposed by some financing structures, typically allow infrastructure companies to support more leverage than traditional corporates.

Companies within the industry provide infrastructure that support a broad array of services,…