Standard&Poor's Ratings Services' 'BBB' underlying rating (SPUR) 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/Developing/--) of payment of scheduled interest and principal on the bonds. According to our criteria, the rating on a monoline-insured debt issue reflects the higher of the ratings on the monoline insurer and the SPUR. The long-term ratings on the bonds reflect the SPUR, because Ambac Assurance U.K. is rated lower than the SPUR. ProjectCo is using the funds to
