Credit ratings agency Fitch has pegged the outlook for energy infrastructure in Europe and the Middle East as “stable” apart from renewables.

In a report out yesterday it pointed to recent slashes to incentives in Italy for solar photovoltaics and in Spain for renewables in general.

The agency said its negative outlook for the European renewable energy sector “reflects such regulatory risk”.

On the other hand, it notes strengths for oil and gas projects in low “break-even” price levels and “firm bases” of long-term take-or-pay contracts.

The “monopoly status” held by many gas projects and steady cash flow generally guarantees their rating stability, suggested Fitch, unless there are “transaction-specific issues or regulatory instability”.