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KBRA Europe Releases Research – Growing Impact of Rising Wholesale Energy Prices on Europe

DUBLIN--(BUSINESS WIRE)--KBRA Europe (KBRA) releases research on the impact of natural gas and electricity prices in Europe. With the ongoing impact of the events in Ukraine, Russia, and Europe on wholesale markets, energy prices have been steadily increasing. KBRA notes that natural gas security and supply challenges will likely cause Europe’s energy prices to remain elevated for some time, and this could have severe consequences for industries, households, and the public sector.

In the report, KBRA assesses the immediate impact of the energy price rises in Europe, as well as the credit implications of potential policy measures, both financial and regulatory. Amid this rapidly shifting policy environment, the degree to which these policy measures may help or hinder the sovereign, corporate, infrastructure, and project finance sectors will develop rapidly. As such, the report also outlines some of KBRA’s current expectations.

Key Takeaways

  • Consumer and business cash flows will be negatively impacted as rapid energy price rises are felt this winter, with growing differentiation in pricing amongst countries.
  • Unintended consequences of policy measures are a considerable risk despite positive intentions to fund households and businesses to assist them through the current energy crisis.
  • Utility providers and energy-intensive manufacturing corporations are the most exposed in the immediate term, with more cyclically exposed sectors vulnerable to macroeconomic swings in the medium to long term.
  • Fiscal pressures are likely to be material for EU and UK sovereigns as they navigate how to best fund and support their citizens and businesses.
  • Operational and funding alignment across the EU will be key in ensuring the effectiveness of new energy policies.

Click here to view the report.

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About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

Contacts

Karim Nassif, Project Finance & Infrastructure
+353 1 588 1245
karim.nassif@kbra.com

Gordon Kerr, Head of European Research
+44 20 8148 1020
gordon.kerr@kbra.com

Ken Egan, Director, Sovereigns
+353 1 588 1275
ken.egan@kbra.com

Garret Tynan, European Head of Project Finance & Infrastructure
+353 1 588 1235
garret.tynan@kbra.com

Andrew Giudici, Global Head of Corporate, Project & Infrastructure Finance
+1 (646) 731-2372
andrew.giudici@kbra.com

Arinjoy Bhanja, Analyst, Project Finance & Infrastructure
+353 1 588 1271
arinjoy.bhanja@kbra.com

Business Development Contacts

Mauricio Noé, Co-Head of Europe
+44 20 8148 1010
mauricio.noe@kbra.com

Miten Amin, Managing Director
+44 20 8148 1002
miten.amin@kbra.com

KBRA Europe

Details
Headquarters: New York City, New York
CEO: Jim Nadler
Employees: 400+
Organization: PRI

Release Versions

Contacts

Karim Nassif, Project Finance & Infrastructure
+353 1 588 1245
karim.nassif@kbra.com

Gordon Kerr, Head of European Research
+44 20 8148 1020
gordon.kerr@kbra.com

Ken Egan, Director, Sovereigns
+353 1 588 1275
ken.egan@kbra.com

Garret Tynan, European Head of Project Finance & Infrastructure
+353 1 588 1235
garret.tynan@kbra.com

Andrew Giudici, Global Head of Corporate, Project & Infrastructure Finance
+1 (646) 731-2372
andrew.giudici@kbra.com

Arinjoy Bhanja, Analyst, Project Finance & Infrastructure
+353 1 588 1271
arinjoy.bhanja@kbra.com

Business Development Contacts

Mauricio Noé, Co-Head of Europe
+44 20 8148 1010
mauricio.noe@kbra.com

Miten Amin, Managing Director
+44 20 8148 1002
miten.amin@kbra.com

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