Fitch Ratings-Sao Paulo/New York-08 May 2024: Fitch Ratings has updated its criteria for rating public sector counterparty obligations in public private partnership (PPP) transactions. The criteria updates and replaces the prior report from April 2022.
The criteria report continues to set out Fitch’s methodology for assigning new ratings and monitoring existing ratings for obligations of public-sector grantors under a concession, lease or other agreement (referred to herein as a framework agreement) used to support PPP financing for public infrastructure assets.
With this update, Fitch expands the scope to include obligations of government-related entities (GREs) within the U.S. following publication of the U.S. Public Sector, Revenue-Supported Entities Rating Criteria in January 2024 which allowed for U.S.-based GREs. This report also updates references to other criteria including to the U.S. Public Finance Local Government Rating Criteria and U.S. Public Finance State Governments and Territories Rating Criteria, both published in April 2024.
The key criteria elements remain consistent with those of the prior report. There is no effect on outstanding ratings. The previous version of the criteria has been retired.
The updated criteria report is available at ‘www.fitchratings.com’.