S&P lifts Healthcare Support debt

S&P said it raised the rating on the senior secured debt issued by Healthcare Support (Newcastle) Finance plc to BB+ from BB- and removed the rating from CreditWatch positive.

The outlook is positive.

The debt is comprised of a £115 million senior secured European Investment Bank loan due March 2038 and £197.82 million of senior secured bonds due September 2041, S&P said.

The debt was issued in 2006 and used to fund the design and construction of two new facilities at the Freeman Hospital and Royal Victoria Infirmary for the Newcastle-Upon-Tyne Hospitals National Health Service Foundation Trust, the agency said.

Both debt tranches benefit from an unconditional and irrevocable payment guarantee of scheduled interest and principal provided by Syncora Guarantee U.K. Ltd., S&P noted.

The recovery rating on the debt remains at 2, indicating 70% to 90% expected default recovery.

The upgrade reflects a view of the project's reduced risk profile following the successful conclusion in August 2016 of the settlement agreement that resolved the long-running construction dispute between Healthcare Support (Newcastle) Ltd., the trust and the project's construction contractor, Laing O'Rourke Construction Ltd., along with the project's facilities management service provider, Interserve FM, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.