Research Update: UPP Bond 1 Issuer PLC Outlook Revised To Stable On Resilient Performance; 'BBB+' Ratings Affirmed

Regardless of the exposure to demand risk, occupancy across UPP Bond 1 Issuer PLC's (UPP) seven assets stood at 96.6% for the 2020-2021 academic year, with only two particularly affected by COVID-19 pandemic-related uncertainty and prolonged restrictions in the U.K. In our view, UPP is well positioned to continue delivering robust performance thanks to its multi-asset and full cross-collateralization portfolio, which allows it to cover shortfalls from underperforming assets, as well as its sustained focus on investments to maintain the competitiveness of its on-campus facilities. We expect UPP to recover historical occupancy levels above 99% and retail price index (RPI)-linked annual term rental income increases. We revised our outlook on UPP to stable from negative and affirmed our 'BBB+' issuer

...- Regardless of the exposure to demand risk, occupancy across UPP Bond 1 Issuer PLC's (UPP) seven assets stood at 96.6% for the 2020-2021 academic year, with only two particularly affected by COVID-19 pandemic-related uncertainty and prolonged restrictions in the U.K. - In our view, UPP is well positioned to continue delivering robust performance thanks to its multi-asset and full cross-collateralization portfolio, which allows it to cover shortfalls from underperforming assets, as well as its sustained focus on investments to maintain the competitiveness of its on-campus facilities. - We expect UPP to recover historical occupancy levels above 99% and retail price index (RPI)-linked annual term rental income increases. - We revised our outlook on UPP to stable from negative and affirmed our '###+' issuer credit rating. - The stable outlook reflects our expectations that UPP will maintain good performance despite the ongoing global pandemic and that demand for the accommodation in the portfolio...

Research Update