...These criteria outline Fitch Ratings' global approach to rating the obligations of a public-sector grantor (grantor) under a concession, lease or other agreement (referred to herein as a framework agreement) used to support a public-private partnership (PPP) financing for public infrastructure assets. Such ratings are an input in the rating process for PPP transactions. The criteria establish a globally consistent framework to: Determine if the PPP framework agreement qualifies for assignment of a counterparty rating. Establish a methodology for notching from the general credit quality of the public-sector counterparty to reflect any perceived higher risk of default under a framework agreement. Guide how to consider the PPP obligation in the public-sector counterparty's general credit rating (as expressed in the IDR), as well as how a late payment or rejection of an obligation under the framework agreement would be reflected in the counterparty's IDR. Public-sector counterparties considered...
