The FINANCIAL — London-04 July 2011: Fitch Ratings has affirmed LCR Finance Plc (LCRF), as follows:
GBP1,225m notes due 2028: senior unsecured 'AAA', Outlook Stable;
GBP425m notes due 2038: senior unsecured 'AAA', Outlook Stable;
GBP1,100m notes dues 2051: senior unsecured 'AAA', Outlook Stable.
All bonds remain free-standing, irrevocable, direct payment obligations of the Secretary of State for Transport (SoS) whose liabilities are sovereign obligations of the UK ('AAA'/Stable). As such, the notes are rated 'AAA'/Stable.
The bonds were originally issued to raise funds for LCR's construction works on Section 1 of the Channel Tunnel Rail Link (CTRL1), and benefit from an unconditional and irrevocable guarantee from the SoS acting for and on behalf of the Government of the UK (HMG). Following the 2009 restructuring, the shares in LCR, the issuing SPV, were transferred from LCR to HMG.
The ratings of the LCRF notes rely on HMG and, as such, are credit-linked to the UK sovereign rating. Fitch's rating actions are based on the documents and information provided by the issuer and other parties.
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