Strong and supportive project agreement (PA) for 25-year operation About 95% of revenues coming from the State of Victoria, with no volume risk Operating risks mitigated by simple nature of services, five-year benchmarking of soft facilities management, and indexation of lifecycle costs Appropriate financing structure and security, with senior lender oversight and step-in rights before the State can terminate the PA The special-purpose-entity nature of the issuer and Plenary Conventions Pty. Ltd. (PCPL), amortizing debt, no interest-rate exposure, and appropriate reserves Exposure to unrated and financially weak builder, although this risk is mitigated by a strong cost-to-complete test, novation regime for subcontractors, simple design works, and 20% performance bonds to cover reasonable cost escalation and potential builder insolvency Constrained and...
Companies mentioned in this report are:
- MPC Funding Ltd.
- Plenary Conventions Pty Ltd.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis