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Asia may not be able to fund its infrastructure needs without deeper credit culture: S&P
Asian governments in high-growth countries may face difficulties in maintaining growth and funding for all their infrastructure needs, Standard & Poorâs Ratings Services (S&P) said in its recently published report titled âWhy Global Investors Arenât Making Inroads Into Infrastructure Funding In Asia
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sian governments in high-growth countries may face difficulties in maintaining growth and funding for all their infrastructure needs, Standard & Poor's Ratings Services (S&P) said in its recently published report titled 'Why Global Investors Aren't Making Inroads Into Infrastructure Funding In Asia.'
The report suggests that governments will need the private sector to channel funds into projects, or face the prospect of a slowdown in investments that will constrain economic growth.
'Many offshore investors expect higher returns from Asian infrastructure investments to reflect the greater risk. However, they are competing with liquid local banks that can charge lower costs and lend on weaker credit standards. As a result, there's little incentive for governments to structure projects that international investors would consider investable,' S&P credit analyst Ian Greer said in an official release on Thursday.
