The guaranteed long-term 'A' rating and negative outlook on the £189.2 million index-linked senior secured bonds (including £30 million of variation bonds) due 2043 issued by U.K.-based special purpose vehicle BY Chelmer PLC (ProjectCo) reflects the unconditional and irrevocable guarantee provided by Ambac Assurance U.K. Ltd. (A/Negative/--) of payment of scheduled interest and principal on the bonds. The preliminary underlying rating on the debt is 'BBB'. ProjectCo is using the funds to finance the design, construction, and maintenance of new 600-bed healthcare facilities of Broomfield Hospital, in Chelmsford, Essex, for the Mid Essex Hospital Services NHS Trust (the Trust) under a 35-year project agreement signed on Dec. 6, 2007. The facilities comprise a five-story new-build hospital connected to the existing
