OREANDA-NEWS. April 14, 2015. Fitch Ratings has assigned High Speed Rail Finance (1) PLC's GBP97m index-linked tap issue an expected rating, as follows:

GBP97m 1.566% index-linked instalment bonds due 2038: 'A-(EXP)'; Outlook Stable

The final rating is contingent upon the receipt of final documents conforming to information already received. The final amount may differ slightly following final pricing.

The bonds are to be consolidated and form a single series with the existing series 1 GBP150m 1.566% index-linked instalment bonds due 2038 under High Speed Rail Finance (1) PLC's multicurrency bond programme, which Fitch rates at 'A-' with Stable Outlook. The issue will refinance HS1 Limited's existing bank debt.

KEY RATING DRIVERS
The ratings reflect the resilient operating profile of HS1 Limited, operator of the only high speed railway concession in the UK (High Speed 1), expiring December 2040.

RATING SENSITIVITIES
A positive rating action may result from a continuation of HS1 Limited's stable operating performance, particularly in relation to non-underpinned and commercial revenues and unrecoverable costs. As the project is considered a quasi-availability project, significant and sustained outperformance of Fitch's rating case resulting in an average debt life coverage ratio (DLCR) well in excess of 1.6x may justify an upgrade.

Conversely revenue deterioration that leads to material underperformance of the rating case, resulting in an average DLCR consistently below 1.50x could trigger negative rating action.