Peru’s infrastructure investment will benefit from legislation passed this year that aims to
and streamline processes of public and private investment to speed the pace of project execution, Moody’s Investors Services has affirmed.
"However, we do not expect the political fallout to have a significant impact on economic performance in the coming months," the credit rating agency indicated.
"These trends are credit positive for a number of our rated entities in infrastructure industries, which we see benefiting from new business opportunities as more projects are tendered," Moody's expressed.
Public-private partnerships through 2020
On the other hand, the Inca country is set to launch over 40 public-private partnerships through 2020, totaling investments of around US$6 billion. This includes seven electricity transmission projects that will be tendered, with an estimated investment of US$519 million, which could benefit companies in the transmission business sector.
In addition, a US$400 million gas distribution project for Peru's southeast region will be launched.
"While these investments will likely require debt funding, which could increase leverage, we expect affected companies to maintain an adequate
credit risk profile," Moody's said.
This is primarily because they operate in a regulated sector where tariffs are set such that companies earn a return on their investments.
(END) NDP/DTK/MVB