Fitch proposes to unify its corporate, infrastructure and project finance criteria: what issuers need to know
Fitch Ratings is proposing to merge its Corporate Rating Criteria and its Infrastructure and Project Finance Rating Criteria into a single, modular framework: the Corporate, Infrastructure and Project Finance (CIPF) Rating Criteria. The change is driven by market trends, in particular the emergence of "Infrastructure 2.0" structures that blur the line between corporate and project finance debt, and it aims to bring a consistent, flexible analytical approach, with greater transparency and comparability across the credit spectrum.
Michael Boumendil attended Fitch's presentation of the proposal by Marjan van der Weijden, Scott Zuchorski, Danilo Quattromani and Maude Tremblay. These are the key points.
What is proposed
Unified Issuer Default Ratings. The corporate IDR framework would be extended to all infrastructure and project finance transactions, so that every issuer's probability of default is measured on the same basis.
A modular rating tool. Standalone credit profiles would be anchored on five standardised business profile factors and three financial profile factors, then notched up or down for additional considerations: analytical adjustments such as debt structure, governance, the operating environment, and qualitative overlays for counterparty risk, completion risk and debt structure.
Sixteen new sector navigators. Legacy sector criteria would be replaced by sixteen navigators covering asset classes from digital infrastructure and data centres to renewables, transportation and generic project finance.
Standardised notching and recovery ratings. Instrument ratings would explicitly reflect expected recovery given default, using a generic relative-ranking approach for IDRs of BB- and above and a bespoke valuation and creditor-waterfall approach for B+ and below.
Expected impact
Fitch expects about 20% of rated infrastructure and project finance debt instruments to see a positive impact, mostly of one notch and concentrated in the BB category or below. Issuers currently rated under the corporate criteria are unlikely to be affected.
Timetable
Market participants are invited to submit written feedback on the proposed criteria until 6 November 2026, with final publication expected by the end of the year.
What it means for issuers
For infrastructure and project finance issuers rated by Fitch, this is the moment to assess how the new navigators and the unified IDR framework would treat your credit, whether the recovery-rating approach changes the notching of your instruments, and whether the consultation is an opportunity to make representations. For corporates with infrastructure-like characteristics, the modular framework may open up a different route to the rating.
If you would like help navigating the criteria update, assessing the potential rating impact or optimising your capital structure and credit positioning, arrange a free, strictly confidential initial consultation via our contact page.
