The issue rating on UPP Bond 1 Issuer PLC reflects our view of the following key credit strengths: Full cross-collateralization, with the AssetCos jointly and severally guaranteeing the loan agreements and pooling cash for the benefit of the issuer, so that excess cash from performing assets makes up for potential shortfalls from underperforming assets. A track record of successful operations. There have been minimal deductions for services and availability over the past five years in relation to the transaction portfolio. Strong underlying credit quality and student demand profiles for the six universities involved, for which the provision of good-quality accommodation is an important element of their strategies. The assets are all located on campus and benefit from fairly inelastic demand
