OREANDA-NEWS. -- S&P Global Ratings today assigned its preliminary 'BBB+' rating to MPG's proposed $205 million private placement senior secured notes. The notes are proposed to consist of three equal tranches of $68.33 million, maturing in 2028, 2036 and 2046.The outlook is stable.

Our final ratings will depend on receipt and satisfactory review of all final transaction documentation, including legal opinions. Accordingly, the preliminary ratings should not be construed as evidence of final ratings. If S&P Global Ratings does not receive final documentation within a reasonable timeframe, or if final documentation departs from materials reviewed, we reserve the right to withdraw or revise our ratings.

The rating reflects Millennium Garages' long operating history, which supports our base case volume and revenue projections over the next 40 years. The project benefits from a supportive concession agreement that provides the project with complete discretion over setting parking rates, permits alternative uses to generate revenue, and reflects a benign deduction regime. The project also benefits from predictable operating and maintenance (O&M) costs, and a capital program that can be benchmarked against past requirements. (The garages have been operating under this concession agreement since November 2006).

The stable outlook reflects our view that the project will generate cash flows in line with our base case forecast and that the minimum DSCR will remain above 1.8x.