Ranking Motion: Moody’s affirms Sustainable Communities for Leeds (Finance) PLC s ranking and maintains secure outlookGlobal Credit score Analysis – 11 Mar 2022London, March 11, 2022 — Moody’s Traders Service (Moody’s) has in the present day affirmed the underlying ranking of A3 on GBP102 million senior secured bonds due 2032 (the Bonds) issued by Sustainable Communities For Leeds (Finance) PLC (the Issuer). The outlook stays secure.The Issuer is the funding car for Sustainable Communities for Leeds Restricted (SC4L).RATINGS RATIONALEThe A3 underlying ranking on the Bonds displays as positives (1) ProjectCo’s passable efficiency since SC4L started offering Amenities Administration (FM) companies in September 2013, with minimal ranges of precise monetary deductions incurred; (2) the long run Undertaking Settlement (PA) with Leeds Metropolis Council (the Council); (3) the availability-based income stream underneath the PA (4) the straightforward nature of the FM obligations, comprising (a) reactive and deliberate upkeep, and (b) cleansing of communal areas for residential housing. FM obligations are extra straight-forward than on hospital PFIs, and comparable to highschool or lodging initiatives and (5) the lifecycle threat, which is totally handed right down to the FM subcontractor, Equans.Nonetheless, the ranking is constrained by (1) SC4L’s excessive leverage, with minimal and common debt-service protection ratios of 1.22x and 1.28x respectively, which reduces its potential to resist sudden stress.RATIONALE FOR STABLE OUTLOOKThe outlook is secure, reflecting our view that SC4L will proceed to display passable operational efficiency.FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGThe ranking might be upgraded if (1) SC4L demonstrates continued passable FM efficiency, with minimal claimed and precise deductions.The ranking might be downgraded if (1) poor service supply, or (2) a deterioration in SC4L’s relationship with the Council, considerably will increase the extent of economic deductions or the danger of PA termination.The principal methodology used on this ranking was Operational Privately Financed Public Infrastructure (PFI/PPP/P3) Initiatives Methodology printed in June 2021 and accessible at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1244911. Alternatively, please see the Ranking Methodologies web page on www.moodys.com for a replica of this system.REGULATORY DISCLOSURESFor additional specification of Moody’s key ranking assumptions and sensitivity evaluation, see the sections Methodology Assumptions and Sensitivity to Assumptions within the disclosure kind. Moody’s Ranking Symbols and Definitions might be discovered at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.For scores issued on a program, collection, class/class of debt or safety this announcement supplies sure regulatory disclosures in relation to every ranking of a subsequently issued bond or be aware of the identical collection, class/class of debt, safety or pursuant to a program for which the scores are derived completely from current scores in accordance with Moody’s ranking practices. For scores issued on a assist supplier, this announcement supplies sure regulatory disclosures in relation to the credit standing motion on the assist supplier and in relation to every explicit credit standing motion for securities that derive their credit score scores from the assist supplier’s credit standing. For provisional scores, this announcement supplies sure regulatory disclosures in relation to the provisional ranking assigned, and in relation to a definitive ranking that could 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 project of the definitive ranking in a fashion that might have affected the ranking. For additional data please see the scores tab on the issuer/entity web page for the respective issuer on www.moodys.com.For any affected securities or rated entities receiving direct credit score assist from the first entity(ies) of this credit standing motion, and whose scores could change because of this credit standing motion, the related regulatory disclosures will likely be these of the guarantor entity. Exceptions to this method exist for the next disclosures, if relevant to jurisdiction: Ancillary Companies, Disclosure to rated entity, Disclosure from rated entity.The ranking has been disclosed to the rated entity or its designated agent (s) and issued with no modification ensuing from that disclosure.This ranking is solicited. Please seek advice from Moody’s Coverage for Designating and Assigning Unsolicited Credit score Scores accessible on its web site www.moodys.com.Regulatory disclosures contained on this press launch apply to the credit standing and, if relevant, the associated ranking outlook or ranking evaluate.Moody’s normal ideas for assessing environmental, social and governance (ESG) dangers in our credit score evaluation might be discovered at http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1288235.The International Scale Credit score Ranking on this Credit score Ranking Announcement was issued by one in every of Moody’s associates exterior the EU and is endorsed by Moody’s Deutschland GmbH, An der Welle 5, Frankfurt am Foremost 60322, Germany, in accordance with Artwork.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit score Ranking Companies. Additional data on the EU endorsement standing and on the Moody’s workplace that issued the credit standing is obtainable on www.moodys.com.Please see www.moodys.com for any updates on adjustments to the lead ranking analyst and to the Moody’s authorized entity that has issued the ranking.Please see the scores tab on the issuer/entity web page on www.moodys.com for extra regulatory disclosures for every credit standing. Pierre-Olivier Chenu Analyst Infrastructure Finance Group Moody’s Traders Service Ltd. One Canada Sq. Canary Wharf London, E14 5FA United Kingdom JOURNALISTS: 44 20 7772 5456 Shopper Service: 44 20 7772 5454 Kevin Maddick Affiliate Managing Director Infrastructure Finance Group JOURNALISTS: 44 20 7772 5456 Shopper Service: 44 20 7772 5454 Releasing Workplace: Moody’s Traders Service Ltd. One Canada Sq. Canary Wharf London, E14 5FA United Kingdom JOURNALISTS: 44 20 7772 5456 Shopper Service: 44 20 7772 5454 © 2022 Moody’s Company, Moody’s Traders 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. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE APPLICABLE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS (“ASSESSMENTS”), AND OTHER OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.All data contained herein is obtained by MOODY’S from sources believed by it to be correct and dependable. Due to the potential of human or mechanical error in addition to different elements, nonetheless, all data contained herein is offered “AS IS” with out guarantee of any sort. MOODY’S adopts all needed measures in order that the knowledge it makes use of in assigning a credit standing is of adequate high quality and from sources MOODY’S considers to be dependable together with, when acceptable, unbiased third-party sources. Nonetheless, MOODY’S shouldn’t be an auditor and can’t in each occasion independently confirm or validate data obtained within the ranking course of or in getting ready its Publications.To the extent permitted by regulation, MOODY’S and its administrators, officers, workers, brokers, representatives, licensors and suppliers disclaim legal responsibility to any individual or entity for any oblique, particular, consequential, or incidental losses or damages by any means arising from or in reference to the knowledge contained herein or the usage of or incapacity to make use of any such data, even when MOODY’S or any of its administrators, officers, workers, brokers, representatives, licensors or suppliers is suggested prematurely of the potential of such losses or damages, together with however not restricted to: (a) any lack of current or potential earnings or (b) any loss or injury arising the place the related monetary instrument shouldn’t be the topic of a selected credit standing assigned by MOODY’S.To the extent permitted by regulation, MOODY’S and its administrators, officers, workers, brokers, representatives, licensors and suppliers disclaim legal responsibility for any direct or compensatory losses or damages brought about to any individual or entity, together with however not restricted to by any negligence (however excluding fraud, willful misconduct or some other sort of legal responsibility that, for the avoidance of doubt, by regulation can’t be excluded) on the a part of, or any contingency inside or past the management of, MOODY’S or any of its administrators, officers, workers, brokers, representatives, licensors or suppliers, arising from or in reference to the knowledge contained herein or the usage of or incapacity to make use of any such data.NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.Moody’s Traders Service, Inc., a wholly-owned credit standing company subsidiary of Moody’s Company (“MCO”), hereby discloses 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 Moody’s Traders Service, Inc. have, previous to project of any credit standing, agreed to pay to Moody’s Traders Service, Inc. for credit score scores opinions and companies rendered by it charges starting from $1,000 to roughly $5,000,000. MCO and Moody’s Traders Service additionally preserve insurance policies and procedures to deal with the independence of Moody’s Traders Service credit score scores and credit standing processes. Info concerning sure affiliations that will exist between administrators of MCO and rated entities, and between entities who maintain credit score scores from Moody’s Traders 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 underneath the heading “Investor Relations — Company Governance — Director and Shareholder Affiliation Coverage.”Further phrases for Australia solely: Any publication into Australia of this doc is pursuant to the Australian Monetary Companies License of MOODY’S affiliate, Moody’s Traders 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 offered solely to “wholesale purchasers” throughout the that means of part 761G of the Companies 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 shopper” and that neither you nor the entity you symbolize will immediately or not directly disseminate this doc or its contents to “retail purchasers” throughout the that means of part 761G of the Companies 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.Further 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 shouldn’t be a Nationally Acknowledged Statistical Ranking Group (“NRSRO”). Subsequently, 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 remedy underneath U.S. legal guidelines. MJKK and MSFJ are credit standing companies registered with the Japan Monetary Companies 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 project of any credit standing, agreed to pay to MJKK or MSFJ (as relevant) for credit score scores opinions and companies rendered by it charges starting from JPY100,000 to roughly JPY550,000,000.MJKK and MSFJ additionally preserve insurance policies and procedures to deal with Japanese regulatory necessities.