Fitch: 2015 Mid-Year Outlook Stable for Thermal, Renewable and Oil & Gas Projects
Most thermal projects have fixed-price tolling agreements that mitigate market and fuel price volatility. Projects exposed to operational or market price volatility greater than those modeled in Fitch's rating cases could be subject to downward rating pressure.
Renewable energy projects benefit from fixed-price revenue contracts to avoid price risk, but resource risk remains. Early results from recently completed solar projects are consistent with base case expectations, while most wind projects remain more volatile than originally expected but supportive of current ratings.
Liquefied natural gas (LNG) export terminals feature strong contracts to mitigate completion, price and volume risks, while lower oil prices have changed competitive dynamics. Other commodity production facilities under development are often subject to feedstock and commodity price risk and rely on structural enhancements to mitigate volatility.
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