The 'BBB' rating on the £192.65 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 a composite of credit factors, as detailed below. The bonds retain an unconditional and irrevocable guarantee provided by Ambac Assurance U.K. Ltd. (local currency CC/Negative/--) of payment of scheduled interest and principal on the bonds. According to Standard&Poor's Ratings Services' criteria, the rating on a monoline-insured debt issue reflects the higher of the ratings on the monoline and on Standard&Poor's underlying rating (SPUR). Therefore, the long-term ratings on the bonds reflect the SPUR as Ambac Assurance U.K. is rated below it. ProjectCo is using the funds
