S&P: Metronet remains on watch

Standard & Poor's said it kept its BB+ long-term and underlying debt ratings on the £1.620 billion combined senior secured bank loans and debt issued by Metronet Rail BCV Finance plc and Metronet Rail SSL Finance plc on CreditWatch with negative implications, where they were placed on May 22.

This follows the public-private partnership administration order granted over Metronet Rail BCV Ltd. and Metronet Rail SSL Ltd. on July 18, the agency said.

At the same time, S&P said it affirmed its AAA insured rating on the £165 million index-linked bonds and £350 million fixed-rate bonds outstanding at Metronet BCV, reflecting the unconditional and irrevocable guarantee of payment of interest and principal by Financial Security Assurance U.K. Ltd. (AAA/stable) and Ambac Assurance U.K. Ltd. (AAA/stable), respectively.

In addition, S&P said it affirmed its AAA insured rating on the £165 million index-linked bonds and £350 million fixed-rate bonds outstanding at Metronet SSL, reflecting the unconditional and irrevocable guarantee of payment of interest and principal by Ambac and FSA, respectively.

The agency noted that the CreditWatch status reflects the risks and uncertainties regarding both the PPP administration process and the ultimate restructuring of the Infracos to deliver their responsibilities under their respective service contracts.

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