This report does not constitute a rating action. Investment in renewable energy projects and other infrastructure is on the rise in Australia and New Zealand. This won't come cheap. Capital management will become increasingly important for entities where spending and dividends exceed operating cash flows, heightening pressure on financial credit metrics. Hybrid capital issuance has increased to support balance sheets for capex or investor returns. We expect this to continue alongside dividend reinvestment, fresh equity and other capital management initiatives. New equity support is already in play for some large transmission projects. However, accessing new equity may prove challenging for some entities. Rising costs remain a material risk for the credit quality of utilities as well as other infrastructure sectors--such
