The ratings agency maintained that the Baa2 senior secured rating and negative outlook of project company Collectif Santé Montreal would remain unchanged, despite plans to let Pomerleau take over Phase 2 of the project instead of a Laing O' Rourke and OHL joint venture.
Moody’s stated: “The negative outlook remains unchanged as Collectif Santé Montreal has not yet achieved final completion of Phase 1 and final completion may not be reached until spring 2018 when a very complex building management system is expected to be finalized.”
Laing O' Rourke and OHL secured the contract in 2011 to design, build, finance and maintain the 330,000sq m hospital with 772 beds, among other components.
However, Phase 1, covering 85% of construction, suffered various delays, with Laing O’Rourke reporting earlier this year that problems with the project forced a £93m (C$153m) write-down.
Moody’s added: “While positive rating pressure in the near-term is unlikely, an upgrade could be considered should final completion of Phase 1 be reached in the early part of 2018.”