New CHUM team ‘outlook unchanged’

Moody’s has revealed that a planned change in the project company for Phase 2 of the Centre Hospitalier de l'Université de Montréal (CHUM) would not affect its outlook.

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.”