OREANDA-NEWS. July 13, 2015 Fitch Ratings says the mid-year 2015 outlook for Fitch's ratings on energy infrastructure projects Europe is stable despite low oil prices and regulatory pressure on renewables..

In a special report published today, Fitch says it expects rated oil and gas projects to maintain their ratings despite lower revenues following a sharp reduction in oil prices over the past 12 months. Pricing formulae in long-term sales agreements, strong operating performance and the highly cost-competitive nature of these projects make them resilient to the negative sector dynamics.

The renewable energy sector still faces challenges from regulators that are reducing economic incentives for new capacity and introducing tighter operating requirements to integrate renewables within the wider power markets. For Fitch-rated renewable energy projects the rating outlook is stable as retroactive cuts to incentives, primarily in Spain and Italy, have been incorporated into the agency's rating cases.

UK offshore transmission projects (OFTOs) are maintaining their strong operating performance with high availability and costs below initial budgets. The latter is largely driven by a benign insurance market and growing familiarity of insurers with the sector. Fitch maintains a stable sector and rating outlook for OFTOs.

The full report, titled '2015 Mid-Year Outlook: EMEA Energy Infrastructure,' is available www.fitchratings.com.