Sensitivity Analysis

As part of the project assessment, Moody's looks at cash flow projections using best-case and worst-case scenarios; with their ultimate goal being to determine how much revenue is needed to cover debt obligations and operating expenses.  In doing a sensitivity analysis, they may use one or a combination of the following scenarios:

  Zero or reduced traffic growth (25-30%)

  Ability to withstand economic recession

  Currency devaluation

  Delays in project construction