...Secure Structure: Zero flow debt structures offer maximum credit protection by preserving all project cash flows to pay out debt on a pass-through basis. Distributions to equity holders are specifically prohibited prior to full debt repayment. The structure has been most commonly used during periods of heightened uncertainty when more sponsor-friendly structures are insufficient to attract investors. Variable Principal Repayment: Uncertainty in the timing of principal cash flows is a central component of the zero flow structure due to the mandatory pass-through of project funds received and the frequent lack of a principal repayment schedule. This flexibility in principal repayment terms significantly reduces the probability of default, creating intrinsic liquidity of sorts by simultaneously minimizing the required principal and maximizing total principal repaid. Primarily Found in Mexico: The majority of zero flow structures in Fitch Rating's Latin America project finance portfolio are...