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S&P’s Mike Wilkins explains the downgrade of a high profile UK PFI agreement

Standard & Poor’s recently downgraded its rating on the £680 million bonds – issued by RMPA Services PLC (ProjectCo) – used to finance the construction of the Colchester Garrison in southeast England, for the U.K. Ministry of Defence under a 35-year private finance initiative (PFI) concession agreement.

Mike Wilkins, Managing Director of Infrastructure Finance at Standard & Poor’s, explains that the downgrade reflects the shift in ownership announced in at the start of the year – and the subsequent aggressive financial policy the ProjectCo is likely to pursue. This would, in turn, likely impact the ProjectCo’s annual debt service coverage ratios

Following Moorgate outreach, InfraNews and Infrastructure Investor covered the news. (Please note these links lie behind paywalls)

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