Less than two months after taking the helm of the Americas section of a new Fitch Ratings group analyzing public-private partnerships and other project finance credits, Daniel Champeau has left the credit rating agency to join Financial Security Assurance Inc.
Champeau joined FSA April 9 as a director in the Americas division of the triple-A guarantor's infrastructure finance group, where he will report to managing director Olivier Garnier. Champeau called the move "an opportunity for me to be on a different side of the business."
Before he became Americas chief in the new P3-focused group at Fitch, Champeau was head of Fitch's revenue-supported municipal bonds group. Other public finance veterans that moved to the new team included Cherian George, Michael McDermott, and Chad Lewis -- all formerly of the revenue-supported public finance group.
Fitch has not settled on a replacement for Champeau nor have they come to a decision on a timeframe for when a replacement might be named, said Fitch spokesman James Jockle.
At FSA, Champeau joins a company that insured part of one of the landmark P3 transactions completed in the U.S. during the last few years. FSA backed $1.4 billion of the financing used for Chicago's 99-year concession of the Chicago Skyway. The city leased the toll road in 2005 to a private consortium for about $1.8 billion.
"We needed additional people with experience here in the states to pursue project finance deals," said Scott Richbourg, managing director in FSA's municipal finance group. "Dan was obviously at the top of our list of people in the U.S. who focus and really understand the project finance business."
Richbourg would not say if discussions with Champeau began before Fitch moved him to its new P3 group.
Originally thought by many to be a one-off deal, the Skyway's lease set off a flurry of interest in the uses and viability of P3s. A handful of other blockbuster P3 deals have been completed since then, and several other states, such as Colorado, Florida, Georgia, New Jersey, Pennsylvania, and Virginia are considering them. Texas is now considering a moratorium on such contracts to allow for further debate before rushing ahead.
Despite the possibilities of a moratorium in Texas, FSA still sees the state as a potential growth area for its P3 and project finance business, Champeau said.
FSA was the busiest insurer of municipal bonds for the second year in a row last year, according to Thomson Financial. The guarantor backed $44.2 billion of public debt issued in 2006. (c) 2007 The Bond Buyer and SourceMedia, Inc. All rights reserved. http://www.bondbuyer.com http://www.sourcemedia.com
