S&P puts Healthcare Support on positive watch

Standard & Poor’s said it placed the B+ rating on the senior secured debt issued by Healthcare Support (Newcastle) Finance plc on CreditWatch with positive implications.

The debt comprises a £115.0 million senior secured European Investment Bank loan due March 2038 and £197.82 million of senior secured bonds due September 2041.

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 said.

The recovery rating on these debt instruments is unchanged at 2, indicating 70% to 90% expected default recovery.

The CreditWatch placement reflects a view that progress is being made to resolve the ongoing dispute between Healthcare Support, Newcastle Upon Tyne Hospitals NHS Foundation Trust and the project’s construction contractor, Laing O’Rourke, relating to the completion sign-off of the clinical office block and to the disputed unavailability and performance deductions, the agency said.

This is an important development for the project as successful conclusion of the negotiations would diminish the threat of project termination by the trust, S&P said.

© 2015 Prospect News.
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