DBRS turns Plenary view to negative

DBRS said it confirmed Plenary Health Care Partnerships Humber LP’s (ProjectCo) issuer rating, series A and series B notes at A (low).

The issuer is a special-purpose vehicle created by Humber River Hospital.

“The trend changes stem from repeated disagreements with HRH over failure points and deductions, resulting in lengthy disputes, which may result in a strained relationship between ProjectCo and the hospital. A new dispute arose over the December 2023 performance monitoring report (PMR), in addition to the current litigation related to the February 2021 PMR.

“The trend changes also reflect the uncertainty about how the new dispute may be resolved: while not expected, if, through the dispute resolution procedure, the hospital proves entitled to require a replacement of the service provider, it may have a material impact on the key financial metrics of the project,” DBRS said in a statement.

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