A project's ability to handle shocks during operations is but one of several facets which DBRS examines when rating a PPP's operating phase. Prior to focusing on stress-testing, DBRS will first analyze other factors which it weights more heavily, including the complexity of the services to be provided, the creditworthiness of the O&M and Lifecycle subcontractors, the extent of risk transferred, as well as the degree of prudence in a project's O&M and Lifecycle budgets. As such, reduced operating robustness could be at least partially mitigated in projects where relatively standard services are delivered by quality subcontractors, or where there has been appropriate risk allocation and conservative budgeting.
For further information, please contact:
Grant Headrick
Vice President - Public Finance
Tel. +1 416 597 7393
gheadrick@dbrs.com
Eric Beauchemin
Managing Director - Public Finance
Tel. +1 416 597 7552
ebeauchemin@dbrs.com
Related Research: Rating Canadian Public-Private Partnerships