Research Update: Outlook On Exchequer Partnership (No. 2) 'A+' SPUR Revised To Negative After Similar Action On BoS; Ratings Affirmed

On April 23, 2020, we revised to negative from stable our outlook on Bank of Scotland Plc, the bank account provider of Exchequer Partnership (No. 2) PLC (EP2), the operator of a U.K. government office building in London. The S&P underlying rating (SPUR) on EP2's senior debt is at the same level as our rating on the bank, and we see a weak link between the SPUR and the rating on the account bank. We are therefore revising our outlook on the SPUR on EP2's senior debt to negative from stable. We affirmed our 'AA' long-term issue rating on the debt, which benefits from an unconditional and irrevocable payment guarantee of scheduled interest and principal provided by Assured Guaranty (Europe)

...- On April 23, 2020, we revised to negative from stable our outlook on Bank of Scotland Plc, the bank account provider of Exchequer Partnership (No. 2) PLC (EP2), the operator of a U.K. government office building in London. - The S&P underlying rating (SPUR) on EP2's senior debt is at the same level as our rating on the bank, and we see a weak link between the SPUR and the rating on the account bank. - We are therefore revising our outlook on the SPUR on EP2's senior debt to negative from stable. - We affirmed our '##' long-term issue rating on the debt, which benefits from an unconditional and irrevocable payment guarantee of scheduled interest and principal provided by Assured Guaranty (Europe) PLC. EP2 used the proceeds of the senior debt issued in 2003 to finance the refurbishment of the east wing of a Grade II-listed U.K. government office building on Great George Street in the Whitehall area of London. EP2 operates the office building under a 35-year availability-based concession...

Research Update