Credit ratings: How a rating agency looks at the digital infrastructure sector in Europe

Scope Ratings at a Glance

We are the leading European credit rating agency (CRA), ensuring that issuers and investors have a diversity of credit opinion. Our bottom-up approach is rooted in a European analytical perspective which considers the local conditions – financial, political, regulatory, judicial and cultural – in which issuers operate. We are the only European CRA accepted by the ECB under the Eurosystem Credit Assessment Framework (ECAF).

Workshop Host: Torsten Schellscheidt

Torsten Schellscheidt is Head of Project Finance Ratings, responsible for Scope’s infrastructure and project finance methodology development and rating activities. Torsten joined Scope Ratings in May 2019.

In a career spanning more than 20 years, Torsten has developed a broad and deep understanding of business models across different sectors and industries: Infrastructure, Project Finance and Corporate Credit. As a specialist in infrastructure, project finance and corporate credit, he leverages his in-depth knowledge of renewable energy and the economy with his experience in credit, equities, corporate finance and business strategy. Prior to joining Scope, Torsten worked for Euler Hermes (Allianz Group), Sal. Oppenheim and WestLB AG.

Torsten holds two Master degrees: MSc in Economics from the University of Duisburg and MBA from the University of Pennsylvania (US). Torsten is also a Chartered Financial Analyst (CFA).

Workshop Objective:

Demonstrate the benefits of the expected loss approach to credit analysis, with particular reference to the fibre optic sector.

Content of the Workshop:

• Expected loss: why it is the most accurate way to assess credit risk in project finance
• Comparing fibre deals across Europe
• How do different structures and market characteristics affect expected loss and credit quality?
• Rating results for various fibre transactions