NOTES

i http://www.hm-treasury.gov.uk/ppp_pfi _stats.htm (data provided up to and including February 2010).

ii Rating agencies are exposed to considerably more PFI projects as they confidentially rate the underlying bank-financed PFI assets in CLOs. This provides analysts with a much broader evidence base from which to draw.

iii Emery K and Ou S (2010), Corporate Default and Recovery Rates, 1920 - 2009, Moody's Investor Service, February 2010, New York.

iv Email from Infrastructure UK dated 1st July, 2010.

v On July 6, 2009, all Metronet bonds were repaid at par together with all accrued interest. Tennant J and Emery K (2009), Default and Recovery Rates for Project Finance Debts, 1992 - 2008, Moody's Investor Service, November 2009, New York.

vi Robinson R and Archer A (2010), PFI/PPP Report: Developing a Market for Unwrapped PFI/PPP Bonds - the Canadian Example, Bridgecourt & Company, January 2010, London.

vii The definition of government-related entity includes "providers of important public infrastructure (prisons, social housing, schools)", Dimitrijevic A et al (2009), Enhanced Methodology for Rating Government-Related Entities and Assessing the Potential for Extraordinary Government Intervention, Standard & Poor's, January 2003, New York.

viii Simonson A et al (2010), Global Project Finance Sector Still Resisting Economic Pressure, Standard & Poor's, June 2010, New York.

ix Verhaeghe J et al (2010), Sector Outlook on EMEA PFI/PPP, Moody's Investor Service, October 2010, London.

x A small number (less than 4%) of project finance credits with ratings below 'B-' have also been omitted from Figure 2.