Power Ratings: Shift In Rankings Highlight Emerging Opportunities
BMI View: We have seen a slight shift in our Latin American ratings this quarter, as Mexico moves up to the top, displacing Chile as the most attractive power market in the region - partially owing to our relatively optimistic outlook towards Mexico's energy sector reform. Venezuela has also moved one place up the table, after several consecutive quarters at the bottom. We have witnessed some marginal progress within the country's power sector over the last few months, with regards to improving existing capacity and bringing new projects online. The knock-on effects of a Chinese economic slowdown, the expansion of renewable energy across the entire region and the increasing opportunities presenting themselves in Central American power sectors are the key themes emerging in this quarter's Latin America Power Risk Rewards Ratings.
The power markets that comprise our Latin American coverage are diverse in nature and in terms of the relative risks and rewards that are on offer. This is evidenced by the 20-point differential between the top- and bottom-ranked countries in our Latin America Power Risk/Reward Ratings (RRRs).
We have identified some key trends emerging across the Latin America region, reflected in our Risk/Reward Ratings this quarter, including:
Mixed Bag Latin America Power Industry Risk/Reward Ratings, Scores Out Of 100