Skip navigation
Newswire

TEXT-S&P expects rise in European transport structured finance

(The following statement was released by the ratings agency).

LONDON, Sept 17 - Structured financing of European transportation assets looks set to take off in Europe, according to a report published on Sept. 16, 2003, by Standard & Poor's Ratings Services.

Monopolistic characteristics and relatively resilient cash flows driven by proven demand have made the European transportation sector one of the most active in the structured financing arena.

"The overriding rationale driving these transactions is that they allow the owners of the assets to optimize funding structures in terms of cost and size," said Standard & Poor's credit analyst Andrew Christie. "The majority of transactions are used to finance the acquisition of the assets, a trend that is likely to continue. As a result, Standard & Poor's expects increased interest in the structured financing of transportation assets."

Standard & Poor's has rated structured finance transactions in a number of transportation sectors including, airports, seaports, rail, ferry services, and is reviewing proposals for toll road operators. The article examines the motivation behind these rated securitized transactions. The associated commentary article, entitled "Securitization Takes Off in European Transportation Sector," forms part of a collection to be published in a credit survey for Standard & Poor's Corporate Securitization Seminar in London on October 21. It was published on Sept. 16, 2003, and is available to subscribers of RatingsDirect, Standard & Poor's Web-based credit analysis system, at www.ratingsdirect.com.