MARC today released its finalised Solar Power Projects (SPP) rating methodology. This methodology had previously been published in exposure draft form for public consultation; however, no material comments were received. There have been no material changes from the proposed methodology published on February 21, 2017. Existing project power financing ratings are not impacted by this methodology.

MARC’s SPP rating methodology outlines the approach and rating considerations that will underpin MARC’s credit analysis of utility-scale solar power project financings. This methodology supplements MARC’s Project Finance and Independent Power Producer rating methodologies. The SPP rating methodology focuses on the specific characteristics and risks associated with solar power generation, in particular resource risk and technology-associated risks. In line with MARC’s analysis of independent power projects, the rating agency’s analysis of SPPs will also focus on the project’s sponsor, regulatory support, offtaker & power purchase agreement, construction risk, financial and issue structure risks.

The SPP methodology was also unveiled at MARC’s 2017 Investors’ Conference on March 6, 2017 to provide insight to potential issuers, arrangers and investors on risks affecting SPP and their financings. The rating agency’s release of its SPP methodology takes place amid Malaysia’s ongoing efforts to increase the uptake of solar photovoltaic (PV) power, widely seen as a promising renewable energy source for the country.

The rating methodology can be accessed on MARC’s website at Solar Power Projects.

Contacts:
David Lee, +603-2082 2255/ david@marc.com.my;
Yap Lai Ken, +603-2082 2247/ laiken@marc.com.my.