Score Motion: Moody’s affirms RWH Finance Pty Ltd’s A2 score and maintains steady outlookGlobal Credit score Analysis – 29 Aug 2022Sydney, August 29, 2022 — Moody’s Buyers Service has at present affrimed the A2 backed senior secured scores on RWH Finance Pty Ltd’s (RWH) AUD145 million listed annuity bonds due June 2033 and AUD150 million backed senior secured debt facillty. The power contains three tranches.”IMPORTANT NOTICE: MOODY’S RATINGS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS. SUCH USE WOULD BE RECKLESS AND INAPPROPRIATE. SEE FULL DISCLAIMERS BELOW.”RWH is the financing automobile for RW Well being Partnership Pty Ltd (RWHP), a particular function entity set as much as design, assemble, function, and keep the Royal Ladies’s Hospital in Melbourne beneath a public non-public partnership. RWHP is finally owned by BBGI SICAV SA (unrated), an LSE-listed infrastructure funding firm.RWH’s senior secured debt is assured by RWHP in addition to RWHP’s proprietor, RW Well being Partnership Holdings Pty Ltd.RWHP supplies facility administration providers over the 25 12 months working section of the undertaking, which it has subcontracted to DTZ FM Providers Pty Ltd (owned by Cushman & Wakefield issuing by means of Cushman & Wakefield U.S. Borrower, LLC. – B1 optimistic) and Wilson Parking.The score outlook stays steady.”The score affirmation displays the steady and predictable nature of the undertaking’s availability-based revenues and its strong operational efficiency over an prolonged interval, elements that underpin the steadiness of money flows for debt service”, says Justin Davey, a Moody’s Senior Analyst/Vice President.The steady outlook displays Moody’s expectation that the undertaking will proceed to function effectively with negligible abatements.RATINGS RATIONALERWH’s A2 score is underpinned by the extremely predictable nature of the undertaking’s money flows which are utilized to service its totally amortising debt, and are derived from fastened availability funds paid by the highly-rated off-taker, being the Victoria state authorities (Treasury Company of Victoria, Aa2 steady). The undertaking’s low working threat profile, as mirrored by the absence of abatements since 2016 and the low-to-moderate complexity of its service obligations, signifies a really low chance of unexpected abataments occurring sooner or later.”The undertaking additional advantages from the strong and established working relationship between the undertaking and the state, in addition to a periodic price benchmarking regime for a element of its FM providers that ought to guarantee ongoing profitabillity for its subcontractors”, provides Davey.Though the undertaking’s FM service supplier Cushman & Wakefield has a materially weaker credit score profile than the undertaking, such a weak spot is mitigated by (1) Cushman & Wakefield’s passable efficiency so far (2) the non-specialised nature of the FM providers, which exclude scientific and catering providers, that means that the undertaking mustn’t expertise undue problem in securing a substitute contractor within the hypothetical occasion that Cushman & Wakefield is requires substitute and (3) the safety from a extremely rated third social gathering in help of Cushman and Wakefield’s obligations.Within the unlikely occasion of undertaking termination, the undertaking is more likely to exhibit a excessive restoration prospect based mostly on the undertaking’s robust asset traits, clear compensation regime and sound structural safety options.RWH’s credit score profile is constrained by its excessive monetary leverage, which reduces its means to resist sudden stress. Moody’s expects the undertaking’s debt service protection ratio (DSCR) to common round 1.18x over the remaining time period, with a minimal DSCR of 1.15x, which is according to related rated Australian PPPs.The undertaking’s DSCR breakeven ratio of roughly 12% signifies a restricted cushion to soak up sudden price will increase, which may come up on a hypothetical substitute of the operator. The undertaking advantages from a totally amortising and hedged debt construction which removes refinance threat and rate of interest threat.FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGSAn improve of RWH’s scores is unlikely within the absence of additional deleveraging, given the undertaking’s excessive leverage and glued availability funds.RWH’s scores could possibly be downgraded if Moody’s assesses the undertaking’s threat profile as being topic to a fabric deterioration within the undertaking’s working threat profile, which could possibly be indicated by (1) the undertaking incurring materials ranges of abatements or (2) a fabric weakening in Cushman & Wakefield’s credit score profile and/or working efficiency.The score is also downgraded if the state’s credit score profile weakens materially, or if RWHP incurs materially higher-than-forecast working prices which it’s unable to get better from the state or subcontractors.The principal methodology utilized in these scores was Operational Privately Financed Public Infrastructure (PFI/PPP/P3) Initiatives Methodology revealed in June 2021 and accessible at https://scores.moodys.com/api/rmc-documents/72487. Alternatively, please see the Score Methodologies web page on https://scores.moodys.com for a replica of this technique.RWH Finance Pty Ltd is the financing automobile for RW Well being Partnership Pty Ltd, which is in flip a particular function entity set as much as design, assemble, function, and supply long run upkeep for the Royal Ladies’s Hospital, in Melbourne, Australia beneath a public non-public partnership.REGULATORY DISCLOSURESFor additional specification of Moody’s key score assumptions and sensitivity evaluation, see the sections Methodology Assumptions and Sensitivity to Assumptions within the disclosure type. Moody’s Score Symbols and Definitions could be discovered on https://scores.moodys.com/rating-definitions.For scores issued on a program, collection, class/class of debt or safety this announcement supplies sure regulatory disclosures in relation to every score of a subsequently issued bond or notice of the identical collection, class/class of debt, safety or pursuant to a program for which the scores are derived solely from current scores in accordance with Moody’s score practices. For scores issued on a help supplier, this announcement supplies sure regulatory disclosures in relation to the credit standing motion on the help supplier and in relation to every specific credit standing motion for securities that derive their credit score scores from the help supplier’s credit standing. For provisional scores, this announcement supplies sure regulatory disclosures in relation to the provisional score assigned, and in relation to a definitive score which may be assigned subsequent to the ultimate issuance of the debt, in every case the place the transaction construction and phrases haven’t modified previous to the task of the definitive score in a way that may have affected the score. For additional data please see the issuer/deal web page for the respective issuer on https://scores.moodys.com.For any affected securities or rated entities receiving direct credit score help from the first entity(ies) of this credit standing motion, and whose scores could change on account of this credit standing motion, the related regulatory disclosures shall be these of the guarantor entity. Exceptions to this strategy exist for the next disclosures, if relevant to jurisdiction: Ancillary Providers, Disclosure to rated entity, Disclosure from rated entity.The scores have been disclosed to the rated entity or its designated agent(s) and issued with no modification ensuing from that disclosure.These scores are solicited. Please check with Moody’s Coverage for Designating and Assigning Unsolicited Credit score Scores accessible on its web site https://scores.moodys.com.Regulatory disclosures contained on this press launch apply to the credit standing and, if relevant, the associated score outlook or score evaluate.Moody’s basic rules for assessing environmental, social and governance (ESG) dangers in our credit score evaluation could be discovered at https://scores.moodys.com/paperwork/PBC_1288235.The World Scale Credit score Score on this Credit score Score Announcement was issued by one among Moody’s associates outdoors the EU and is endorsed by Moody’s Deutschland GmbH, An der Welle 5, Frankfurt am Major 60322, Germany, in accordance with Artwork.four paragraph Three of the Regulation (EC) No 1060/2009 on Credit score Score Companies. Additional data on the EU endorsement standing and on the Moody’s workplace that issued the credit standing is offered on https://scores.moodys.com.The World Scale Credit score Score on this Credit score Score Announcement was issued by one among Moody’s associates outdoors the UK and is endorsed by Moody’s Buyers Service Restricted, One Canada Sq., Canary Wharf, London E14 5FA beneath the regulation relevant to credit standing companies within the UK. Additional data on the UK endorsement standing and on the Moody’s workplace that issued the credit standing is offered on https://scores.moodys.com.Please see https://scores.moodys.com for any updates on adjustments to the lead score analyst and to the Moody’s authorized entity that has issued the score.Please see the issuer/deal web page on https://scores.moodys.com for extra regulatory disclosures for every credit standing. Justin Davey Vice President – Senior Analyst Venture & Infrastructure Finance Moody’s Buyers Service Pty. Ltd. Stage 10 1 O’Connell Road Sydney, NSW 2000 Australia JOURNALISTS: 61 2 9270 8141 Shopper Service: 852 3551 3077 Terry Fanous MD-APAC Proj Infra Fin Venture & Infrastructure Finance JOURNALISTS: 61 2 9270 8141 Shopper Service: 852 3551 3077 Releasing Workplace: Moody’s Buyers Service Pty. Ltd. Stage 10 1 O’Connell Road Sydney, NSW 2000 Australia JOURNALISTS: 61 2 9270 8141 Shopper Service: 852 3551 3077 © 2022 Moody’s Company, Moody’s Buyers Service, Inc., Moody’s Analytics, Inc. and/or their licensors and associates (collectively, “MOODY’S”). All rights reserved.CREDIT RATINGS ISSUED BY MOODY’S CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. 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MCO and Moody’s Buyers Service additionally keep insurance policies and procedures to deal with the independence of Moody’s Buyers Service credit score scores and credit standing processes. Data concerning sure affiliations which will exist between administrators of MCO and rated entities, and between entities who maintain credit score scores from Moody’s Buyers Service and have additionally publicly reported to the SEC an possession curiosity in MCO of greater than 5%, is posted yearly at www.moodys.com beneath the heading “Investor Relations — Company Governance — Director and Shareholder Affiliation Coverage.”Extra phrases for Australia solely: Any publication into Australia of this doc is pursuant to the Australian Monetary Providers License of MOODY’S affiliate, Moody’s Buyers Service Pty Restricted ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as relevant). This doc is meant to be supplied solely to “wholesale shoppers” throughout the that means of part 761G of the Firms Act 2001. By persevering with to entry this doc from inside Australia, you symbolize to MOODY’S that you’re, or are accessing the doc as a consultant of, a “wholesale consumer” and that neither you nor the entity you symbolize will instantly or not directly disseminate this doc or its contents to “retail shoppers” throughout the that means of part 761G of the Firms Act 2001. MOODY’S credit standing is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the fairness securities of the issuer or any type of safety that’s accessible to retail buyers.Extra phrases for Japan solely: Moody’s Japan Ok.Ok. (“MJKK”) is a wholly-owned credit standing company subsidiary of Moody’s Group Japan G.Ok., which is wholly-owned by Moody’s Abroad Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan Ok.Ok. (“MSFJ”) is a wholly-owned credit standing company subsidiary of MJKK. MSFJ isn’t a Nationally Acknowledged Statistical Score Group (“NRSRO”). Due to this fact, credit score scores assigned by MSFJ are Non-NRSRO Credit score Scores. Non-NRSRO Credit score Scores are assigned by an entity that isn’t a NRSRO and, consequently, the rated obligation is not going to qualify for sure sorts of therapy beneath U.S. legal guidelines. MJKK and MSFJ are credit standing companies registered with the Japan Monetary Providers Company and their registration numbers are FSA Commissioner (Scores) No. 2 and three respectively.MJKK or MSFJ (as relevant) hereby disclose that the majority issuers of debt securities (together with company and municipal bonds, debentures, notes and industrial paper) and most well-liked inventory rated by MJKK or MSFJ (as relevant) have, previous to task of any credit standing, agreed to pay to MJKK or MSFJ (as relevant) for credit score scores opinions and providers rendered by it charges starting from JPY100,000 to roughly JPY550,000,000.MJKK and MSFJ additionally keep insurance policies and procedures to deal with Japanese regulatory necessities. ​