OREANDA-NEWS. Fitch Ratings has updated its criteria for rating public sector counterparty obligations in public private partnership (PPP) transactions, with several clarifications and enhancements to the underlying rating factors. The new criteria replace the previous version published on Jan. 15, 2016. There will be no rating changes as a result of the updated criteria.

The changes to the criteria include guidance that legal framework factors are weighted more heavily; the integration of PPP projects into a grantor's existing program frameworks and agreements is not a key rating consideration; the involvement of a supranational as a guarantor or investor in a PPP enhances a grantor's incentives for timely payment on counterparty obligations; and clarity on how default on a PPP counterparty transaction affects a grantor's issuer default rating.