Origin Invest Project Finance
January 2010
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Rating Project Finance
TABLE OF CONTENTS
Introduction to Origin Invest Methodologies
4
Project Finance: An Overview
5
Construction Period
6
Risk Allocation
6
Complexity of Construction
6
Quality of the Construction Contractor
6
External Enhancements
7
Other Considerations
8
Operating Period
10
Risk Allocation
10
Revenue and Off-Take Agreement
10
Operating and Maintenance Risks and Costs
12
Technology Risk
13
Sponsorship, Financial, Legal and Other Consideration
14
Sponsor Strength and Equity Contributions
14
Debt Structure
14
Reserves
15
Credit Quality of Financing Parties
15
Debt Service Coverage
15
Legal Considerations
16
Country and Political Risk
18
Summary of Rating Drivers
19