Fitch affirms MEPC

Fitch Ratings said it has affirmed MEPC Ltd.'s senior unsecured and short-term ratings at B.

The outlook remains negative.

Fitch said the affirmation follows the recent announcement that MEPC "has undertaken to reserve" £122.7 million of its £350 million BT Pension Scheme's unsecured facility to repay 2006 bondholders when those bonds mature.

Fitch said it has not changed the senior unsecured rating of MEPC or the outlook since this already encompasses the post-secured debt funding's resultant tight unencumbered asset cover and interest cover ratios.

The negative outlook continues to encompass the possibility that further funds could be repatriated from MEPC to the holding company, Leconport Estates, as additional inter-company loans with this shell entity, Fitch said.

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