XE.com - TEXT-S&P summary: Aspire Defence Finance PLC

(The following statement was released by the rating agency)

May 25 -

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Summary analysis -- Aspire Defence Finance PLC -------------------- 25-May-2012

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CREDIT RATING: None. Please see issue list. Country: United Kingdom

Primary SIC: Special Purpose

Program

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Rationale

The long-term 'BBB+' rating on the GBP1.768 billion senior secured bonds due in 2040 and issued by U.K.-based special-purpose vehicle Aspire Defence Finance PLC reflect a composite of credit factors outlined below.

The series A bonds retain an unconditional and irrevocable payment guarantee of scheduled interest and principal provided by Ambac Assurance U.K. Ltd. (Ambac; not rated), and by MBIA U.K. Insurance Ltd. (MBIA; B/Negative/--) for the series B bonds. The bonds include GBP230 million of authority variation bonds and GBP75 million of rescue variation bonds, which are currently unissued. Under Standard & Poor's Ratings Services' criteria, a 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 debt ratings on the bonds currently reflect the SPUR, which is higher than the ratings on Ambac and MBIA.

Aspire Defence Finance PLC lent the proceeds of the bonds to Aspire Defence Ltd. (ProjectCo). ProjectCo is using the funds to design, build, finance, and operate new living and working accommodation for the U.K. Ministry of Defence (MOD), and to provide support and estate management services under a 35-year project agreement under the U.K. government's private-finance initiative (PFI).

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