This report provides KBRA’s outlook for the European project finance and infrastructure (PF&I) sector, examining themes that will likely take centre stage in 2026 as well as developments and ratings trends from 2025.
The European PF&I sector displayed broadly stable credit quality in 2025, and KBRA expects continued stability in 2026. The credit backdrop is supported by modest yet stable economic growth, continued policy support for the renewable/digital transition, a stable interest rate environment, and relatively low—though still volatile—energy prices. The credit outlook balances these supportive factors against reduced fiscal capacity across Europe and the UK, rising constraints on power availability, protracted permitting processes, and increasing complexity, alongside continued geopolitical and trade risks.
KBRA’s European PF&I rating activity in 2025 was concentrated in digital infrastructure transactions, particularly telecom towers and fibre networks, which…