I like to describe myself as a 'reformed bank manager', after 26 years in the industry.
It's hard to answer your question definitively, because this type of financing is more about cash flow than asset backing. So it really is a case by case assessment of viability.
A major consideration for me would be exactly what 'huaneng' has pointed out in their post, "Sovereign Risk". For me, NSW poses an unacceptably high risk, and like huaneng, I will not be investing in any project / company that can be destroyed by the NSW Govt like MEL's has been. This was a disgrace and I find it incomprehensible in a developed western country, that they got away with it, and some of the chief culprits "Roberts" in particular will be rewarded by NSW tax payers for the rest of their (I hope) miserable lives, for their incompetence in destroying the credit reputation of NSW.
End of rant
Flip
MEL Price at posting:
5.3¢ Sentiment: Hold Disclosure: Held
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