TEXT-S&P removes U.K. Care No. 1 senior notes from watch neg

Thu Jan 10, 2013 7:14am EST

Related Topics

Jan 10 -

OVERVIEW

-- The U.K. Care No. 1 transaction is a U.K. corporate securitization of a portfolio of residential and nursing homes operated by BUPA care home entities.

-- On Dec. 21, 2012, we removed from CreditWatch negative and affirmed the ratings on Bank Nederlandse Gemeenten N.V., a swap counterparty supporting the rating on the class A1 notes issued by U.K. Care No. 1.

-- Repayment of senior note principal at maturity is largely dependent on the creditworthiness of the swap counterparty, and our rating on the class A1 notes remains linked to the rating on the swap counterparty.

-- We have therefore today affirmed and removed from CreditWatch negative our rating on the class A1 notes and affirmed our rating on the class A2 notes.

Standard & Poor's Ratings Services today affirmed and removed from CreditWatch negative its 'AAA (sf)' credit rating on the class A1 notes issued by U.K. Care No. 1 Ltd. At the same time, we have affirmed our 'A+ (sf)' rating on the class A2 notes (see list below).

The resolution of the CreditWatch placement on the class A1 notes reflects our resolution, on Dec. 21, 2012, of the CreditWatch placement on the swap counterparty Bank Nederlandse Gemeenten N.V. (AAA/Negative/A-1+). Our rating on the class A1 notes remains linked to the rating on the swap counterparty to reflect the support that the counterparty provides to this class of notes. At closing, the issuer made an upfront payment to a swap counterparty in return for payment equal to the class A1 principal amount due at maturity in 2029.

We affirmed our 'A+ (sf)' rating on the class A2 notes based on transaction performance.

The transaction closed in February 2000 and is ultimately backed by rental payments from a portfolio of residential and nursing homes in England, Wales, and Scotland operated by BUPA care home entities.

RELATED CRITERIA AND RESEARCH

All articles listed below are available on RatingsDirect on the Global Credit Portal.

Related Criteria

-- Counterparty Risk Framework Methodology And Assumptions, Nov. 29, 2012

-- European CMBS Methodology And Assumptions, Nov. 7, 2012

-- European Structured Finance Scenario And Sensitivity Analysis: The Effects Of The Top Five Macroeconomic Factors, March 14, 2012

-- Global Structured Finance Scenario And Sensitivity Analysis: The Effects Of The Top Five Macroeconomic Factors, Nov. 4, 2011

-- Methodology: Business Risk/Financial Risk Matrix Expanded, Sept. 18, 2009

-- European Legal Criteria for Structured Finance Transactions, Aug. 28, 2008

-- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008

-- Methodology For Rating And Surveilling European Corporate Securitizations, Jan. 23, 2008

-- Overview Of Legal And Analytical Challenges In Rating U.K. Corporate Securitizations, Jan. 18, 2007

Related Research

-- Bank Nederlandse Gemeenten 'AAA' Ratings Affirmed On Reassessment Of Public Policy Role; Off Watch Neg, Outlook Negative, Dec. 21, 2012

-- Senior Notes In U.K. Care No. 1's Health Care Corporate Securitization On CreditWatch Negative Due To Counterparty Risk, Dec. 21, 2012

-- Various Rating Actions Taken On Dutch Banks Due To Increased Economic Risks, Nov. 16, 2012

RATINGS LIST

Class Rating

To From

U.K. Care No. 1 Ltd.

GBP235 Million Secured Notes

Ratings Removed From CreditWatch Negative And Affirmed

A1 AAA (sf) AAA (sf)/Watch Neg

Ratings Affirmed

A2 A+ (sf)

FILED UNDER: