ARC Ratings’ Project Finance Criteria defines the framework to assess the credit risk during the full cycle of a project finance transaction. The analysis of the two phases (construction and operational) is complemented with a counterparty risk assessment and a structure analysis of each transaction. The counterparty risk assessment considers the potential disruptions arising from the different participants in the transaction and their replaceability, among other factors. The structure analysis assesses the strength of the transaction covenants, the degree of de-linkage of the issuer to its parent entities and whether these could have an influence in the final rating of the transaction.