Peterborough PFI gets ratings upgrade

A hospital PFI project that had previously faced significant difficulties has had its ratings upgraded following a period of stability.

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Ratings agency Moody's has upgraded Peterborough (Progress Health) plc's rating to Baa2 and given it a stable outlook, underlining the major turnaround that the project has achieved in recent years.
Moody’s said the rating reflects “low levels of service failure points and deductions reported in recent years, which have also contributed to an improvement in working relationships between the project parties."
Part of the original package of improvements between the trust and the private partner pledged that Multiplex Services Europe Limited (MSEL) would exit the contract.
However, the scheme's reputation was such that, when a tender was launched for a replacement, none were forthcoming. 
The improvements in the working relationship have now reached such a level that  Moody's said the pressures related to a replacement of the operator have now been reduced.
The rating upgrade marks a remarkable  turnaround for a project that ad faced significant disputes and a breakdown in relationships that led to the formalisation of Commercial Settlement Agreements at the end of 2018.