Introduction8.1 The Basel Committee’s Position on Structured Finance Transactions (Specialized Lending)8.2 Rating Criteria for Specialized Lending and Their Application to Project Finance8.3 Rating Grade Slotting Criteria of the Basel Committee and Rating Agency Practices8.4 The Basel Accord and the Treatment of Credit Risk for Project Finance Loans: Is Project Finance More Risky Than Corporate Loans?8.5 Empirical Studies on Project Finance Defaults and Recovery Rates8.6 Introduction to the Concepts of Expected Loss, Unexpected Loss, and Value at Risk8.7 Defining Default for Project Finance Deals8.8 Modeling the Project Cash Flows8.9 Estimating Value at Risk through Simulations8.10 Defining Project Value in the Event of Default