Research Update: BY Chelmer 'BBB-' Rating Affirmed On Sound Operations; Outlook Stable

The operational performance of BY Chelmer PLC (BYC, ProjectCo) remains stable, as reflected by the low level of deductions it has passed to its facilitates management provider, Mid Essex Hospital Project Ltd. (MEHPL). Despite BYC having little control over the timing of major maintenance, MEHPL has been proactive in maintaining hospital assets and Mid and South Essex NHS Foundation Trust (the trust) is satisfied with the lifecycle delivery. Pending receiving a Deed of Safeguard, the trust's obligations are guaranteed by the Department of Health. Payments due by the trust remain current and the relationship between the trust and the project parties remains solid. We have affirmed our 'BBB–' long-term issue rating on the senior secured bonds issued by BYC. The

...- The operational performance of BY Chelmer PLC (BYC, ProjectCo) remains stable, as reflected by the low level of deductions it has passed to its facilitates management provider, Mid Essex Hospital Project Ltd. (MEHPL). - Despite BYC having little control over the timing of major maintenance, MEHPL has been proactive in maintaining hospital assets and Mid and South Essex NHS Foundation Trust (the trust) is satisfied with the lifecycle delivery. - Pending receiving a Deed of Safeguard, the trust's obligations are guaranteed by the Department of Health. Payments due by the trust remain current and the relationship between the trust and the project parties remains solid. - We have affirmed our '###¡' long-term issue rating on the senior secured bonds issued by BYC. The stable outlook reflects that we expect BYC to continue delivering stable operational and financial performance with an annual debt service coverage ratio generally above 1.05x....

Research Update