OREANDA-NEWS. March 01, 2016. Fitch Ratings has affirmed LCR Finance Plc's (LCRF) notes as follows:

GBP1,225m senior unsecured notes due 2028: affirmed at 'AA+',Outlook Stable
GBP425m senior unsecured notes due 2038: affirmed at 'AA+', Outlook Stable
GBP1,100m senior unsecured notes due 2051: affirmed at 'AA+', Outlook Stable

LCRF is the financing vehicle for London and Continental Railways (LCR), which was selected in 1996 as the winning consortium to construct the Channel Tunnel Rail Link (CTRL) under a private finance initiative agreement. LCRF's unsecured bonds are irrevocably and unconditionally guaranteed by the UK government (HMG; AA+/Stable/F1+).

KEY RATING DRIVERS
The affirmation reflects the stable credit quality of the guarantor, HMG. As the ratings of LCRF's notes rely on HMG and, as such, are credit-linked to the UK sovereign rating, Fitch considers that the only risk factor applicable to the rating is external support, which was assessed as Stronger.

RATING SENSITIVITIES
Given that HMG irrevocably and unconditionally funds and guarantees the full discharge of LCRF's debt service commitments, any change in HMG's rating would lead to a corresponding change in the notes' rating.

SUMMARY OF CREDIT
Section 1 of the CTRL railway opened in September 2003 and section 2 to the newly-restored St Pancras Station opened in November 2007. The company was restructured and transferred to the Department for Transport in mid-2009. In 2010, HMG sold a 30-year concession to operate the entire CTRL (now known as High Speed 1) to a private consortium consisting of Ontario Teachers' Pension Plan and Borealis Infrastructure.