DBRS Morningstar Requests Comments on Proposed Updates to the Global Methodology for Rating Public-Private Partnerships

DBRS Morningstar is requesting comments on the proposed updates to the “Global Methodology for Rating Public-Private Partnerships,” which may, upon the close of the Request for Comment period, supersede the version published on August 30, 2022. This methodology presents the criteria for which public-private partnership (PPP) ratings are assigned and/or monitored.

The material changes are below:
-- Revising the expected construction contractor liability caps for PPP projects that have moderate or high construction complexity levels.
-- Refining the basis of the first notching uplift for a construction contractor’s liquid security.
-- Adjusting the timing to calculate the minimum equity requirement of 7% for design-build-finance-operate-maintain projects to substantial completion from financial close.
-- Clarifying the debt service coverage ratio ranges in the Financial Risk Assessment for BBB category ratings for volume-based PPP projects, with medium, medium high, or high revenue volatility levels.

The proposed material changes are not expected to have an impact on outstanding rated securities.

Comments should be received on or before September 25, 2023. Please submit your comments to the following email address: [email protected].

DBRS Morningstar publishes on its website all comments received, except in cases where confidentiality is requested by the respondent.

Notes:
DBRS Morningstar methodologies are publicly available on its website www.dbrsmorningstar.com under Methodologies & Criteria.

For more information on this methodology or on this industry, visit www.dbrsmorningstar.com or contact us at [email protected].