The 'AA-' long-term insured debt rating on the £166 million 5.396% fixed-rate senior secured bonds due 2036, issued by U.K.-based special-purpose vehicle Exchequer Partnership (No. 2) PLC (EP2; ProjectCo), reflects the unconditional and irrevocable guarantee provided by Assured Guaranty (Europe) Ltd. (AGE; AA-/Stable/--) of payment of scheduled interest and principal on the bonds. The underlying 'A-' rating on the bonds reflects a composite of credit factors outlined below. According to our criteria, a long-term rating on a monoline-insured debt issue reflects the higher of the rating on the monoline and Standard&Poor's underlying rating (SPUR). Therefore, the long-term rating on the above issue reflects the rating on AGE, which is higher than the SPUR. Under a U.K. government private
