RAM Ratings publishes enhanced Project Finance Rating Criteria

Published on 30 Apr 2025.

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As part of its periodic review of rating criteria and methodology, RAM Ratings has updated its criteria for specific project finance sectors, namely for independent power producers (IPPs), toll road and Private-Finance-Initiative (PFI) or Public-Private-Partnership (PPP) projects. The revisions incorporate the recent criteria enhancement introduced for extraordinary financial sponsor support for project finance transactions, which draws from our past experience, particularly in the post-pandemic economy.

Although RAM’s fundamental rating framework for each of these infrastructure assets remain unchanged, we have made revisions to improve analytical clarity and for better transparency, to ensure that our assessment continues to accurately reflect the credit quality of project finance transactions. 

Specifically, the revised Rating Methodology for Independent Power Producers elaborates our views on ESG risks and its impact on IPPs, while the updated Rating Methodology for Toll Road Projects provides further clarity on RAM's existing criteria. Meanwhile, the new Rating Methodology for PFI or PPP Project Financing combines two previously separate criteria papers of the same topic for better cohesion and presentation of our analytical approach. 

The revised criteria have no rating impact on RAM’s existing portfolio and will supersede these previous publications:

• Toll Road Projects Rating Methodology, March 2022
• Rating Methodology for Independent Power Producers, March 2021
• Criteria Update for Companies with PFI or PPP Projects, August 2015
• Rating Approach for Companies with PFI or PPP Projects, January 2011

For further details, please refer to the latest publications here. 

 

Analytical contacts
Chong Van Nee, CFA
(603) 2708 8210
vannee@ram.com.my

Davinder Kaur Gill
(603) 2708 8220
davinder@ram.com.my

Media contact
Sakinah Arifin
(603) 2708 8212
sakinah@ram.com.my

 

The credit rating is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment on the security’s market price or its suitability for a particular investor, nor does it involve any audit by RAM Ratings. The credit rating also does not reflect the legality and enforceability of financial obligations.

RAM Ratings receives compensation for its rating services, normally paid by the issuers of such securities or the rated entity, and sometimes third parties participating in marketing the securities, insurers, guarantors, other obligors, underwriters, etc. The receipt of this compensation has no influence on RAM Ratings’ credit opinions or other analytical processes. In all instances, RAM Ratings is committed to preserving the objectivity, integrity and independence of its ratings. Rating fees are communicated to clients prior to the issuance of rating opinions. While RAM Ratings reserves the right to disseminate the ratings, it receives no payment for doing so, except for subscriptions to its publications.

Similarly, the disclaimers above also apply to RAM Ratings’ credit-related analyses and commentaries, where relevant.

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