NEW YORK, Oct 14, 2005 /PRNewswire

 

From a credit research perspective, sky-high oil and gas prices may be creating the best environment yet for alternative energy companies, according to Standard & Poor's in a special report to be published on Monday, October 17. According to research performed by Standard & Poor's Ratings Services, in the current lending and oil price environment, nearly any rating at all seems sufficient to secure financing for these projects, which include wind, solar, geothermal, biomass, and hydropower. These and other findings can be found in CreditWeek, the investment research leader's weekly magazine on credit risk.

Alternative energy companies have been -- and for the most part, still are -- small players whose markets enjoy less favorable economics than those of traditional energy producers. But the picture is complicated by other forces that, in the current policy and economic environment, give these companies an advantage.

"The high price of fossil fuels, concerns over the environment, the need to diversify America's sources of energy, improved technologies, and the forces of corn-belt politics are combining to create the best investing environment ever for renewable power," said Standard & Poor's credit analyst Terry Pratt. "Therefore we expect to see a higher volume of alternative energy ratings in the medium term, provided that regulators, politicians, and consumers continue to support such projects," said Mr. Pratt.

An early copy of Mr. Pratt's article, "Is Alternative Energy A Viable Alternative In The U.S.?", can be obtained by contacting the media representative below. This and additional energy-related articles in CreditWeek will be posted on Standard & Poor's website on Monday, October 17. In addition, Standard & Poor's will hold a telephone conference call on Monday, October 17 at 10:00 a.m. Eastern Daylight Time, to discuss the impact and credit implications of high energy prices on the U.S. and overseas economies, and on specific industry sectors.

Standard & Poor's, a division of The McGraw-Hill Companies (NYSE: MHP), is the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research and data. With approximately 6,300 employees located in 20 countries and markets, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit http://www.standardandpoors.com .

SOURCE Standard & Poor's

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