Part of a Special Section covering the Nuclear Construction Summit USA 2009, October 26-27 – Washington DC
The Nuclear Construction Summit, USA 2009 was attended by professionals who finance, plan and develop next nuclear projects. Professionals delivered information that will form blueprints for successful financing and construction risk assessment and management at every phase of the construction cycle. From government and regulatory bodies to operator insight and in-depth contractor experience.
- Presented by Sharon Bonelli –
The attached pdf presentation from the NCS meeting details The Fitch Perspective on Nuclear Credit Risks
Credit Risks of Nuclear Construction
> Fitch has no preference for nor against nuclear generation
> Fitch evaluates nuclear investments in a similar fashion to investments in other long-lived assets or capital outlays in the power sector
– Primary focus is on the adequacy of cash flow relative to debt and interest, capital adequacy and liquidity
– Regulated utilities - Mechanisms and timeliness of cost recovery
– Gencos - Wholesale power market energy and capacity pricing forecast model and/or contractual cash flows
> Credit risk peaks during construction period
– High cost relative to market capitalization
Macro Uncertainties
> Gas prices
> Labor and materials prices
> Renewable portfolio standards
> Greenhouse gas and other emissions regulation
> NRC licensing process
Click here for the pdf: The Fitch Perspective on Nuclear Credit Risks