Research Update: U.K.-Based Integrated Accommodation Services PLC SPUR Raised To 'A+' On Solid Financial Performance; Outlook Stable

U.K.-based Integrated Accommodation Services (IAS) has successfully operated and maintained office accommodation facilities for the U.K. intelligence agency headquarters since 2003. Because the annual maintenance costs were overestimated at inception, IAS has been able to preserve asset quality while underspending its maintenance budget. It has recently adjusted its life cycle profile to reflect the real cost of maintenance, thus reducing budgeted spending by 22%. In turn, this cut its capital expenditure (capex) and the cost of funding the maintenance reserve accounts--we now anticipate that IAS will be able to maintain an annual debt service coverage ratio (ADSCR) above 1.40x until the debt matures in March 2029. We are, therefore, raising the S&P Underlying Rating (SPUR) on IAS's senior secured debt

...- U.K.-based Integrated Accommodation Services (IAS) has successfully operated and maintained office accommodation facilities for the U.K. intelligence agency headquarters since 2003. Because the annual maintenance costs were overestimated at inception, IAS has been able to preserve asset quality while underspending its maintenance budget. It has recently adjusted its life cycle profile to reflect the real cost of maintenance, thus reducing budgeted spending by 22%. - In turn, this cut its capital expenditure (capex) and the cost of funding the maintenance reserve accounts--we now anticipate that IAS will be able to maintain an annual debt service coverage ratio (ADSCR) above 1.40x until the debt matures in March 2029. - We are, therefore, raising the S&P Underlying Rating (SPUR) on IAS's senior secured debt to 'A+' from 'A'. At the same time, we are affirming the issue-level rating at ##/Stable/-- based on the unconditional and irrevocable guarantee provided by Assured Guaranty UK Ltd....

Research Update