Asia Pacific Infrastructure Ratings: Risks A Growing Concern
BMI View: The average Risk/Reward scores for the Asian infrastructure sector remain largely unchanged from the previous quarter. However, the risk/reward profiles for several countries have changed slightly, with greater risks being presented by several of the larger emerging markets and lesser risks by others. Overall, the potential for returns in Asia's infrastructure sector remains considerable, reinforcing the region's status as the world's most concentrated infrastructure and construction market.
The average Risk/Reward scores for Asia's infrastructure sector this quarter remain relatively unchanged from the previous quarter. There is still a substantial disparity in the demand for infrastructure throughout Asia. This translates into a significant divergence in rewards and risks among the Asia Pacific infrastructure markets, and a sizeable 40-point differential exists between the top- and bottom-ranked countries in our regional infrastructure ratings table. This wide dispersion presents investors with a range of rewards for different risk appetites.
The key findings from this quarter's update can be summarised as follows:
A Mixed Bag Asia Pacific - Infrastructure BE Risk/Reward Ratings, Scores out of 100