ProjectCo is the special-purpose entity created for the design, construction, financing, maintenance, and rehabilitation of
The Project achieved interim completion on
A joint technical review of the Project was performed by
DBRS Morningstar notes that ProjectCo retains the lifecycle risk of the Project. Although the presence of a three-year look-forward lifecycle reserve mitigates some of the risk, persistently higher-than-expected deterioration of the Project could drive lifecycle costs up considerably (beyond the reserve amount). If that were to occur, it could potentially affect the financial metrics negatively. However, at this time, DBRS Morningstar does not believe such a potential event would affect the financial metrics in the near term.
Since the beginning of the Coronavirus Disease (COVID-19) pandemic, the Project had continued to operate smoothly (including a fully operational COVID-19 Assessment Centre), and BML continues to operate in accordance with all health and safety protocols. The number of failure points and deductions incurred in 2020 (after the relief granted by the Hospital) declined by about 30% and 5%, respectively. However, in the full year of operations of 2021, the number of failure points and deductions increased compared with 2020 levels but were comparable with pre-pandemic metrics. DBRS Morningstar notes that despite the sharp increase in the number of failure points and deductions, these remain well below the warning and monitoring notices of the contractual thresholds. In addition, the deductions incurred have been passed on to the Service Provider, so there has been no financial impact on ProjectCo.
ProjectCo confirmed that the energy base year has been finalized and accepted by the Hospital. ProjectCo and the Hospital are finalizing the standard operating procedure for the energy performance painshare and gainshare calculation. Because the annual energy target has yet to be established, no energy gainshare/painshare has been applied since substantial completion was achieved in 2015. BML continues to measure the consumption of energy in accordance with the PA.
For the year ended
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at.
All figures are in Canadian dollars unless otherwise noted.
The principal methodology is Rating Public Private Partnerships (
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The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.
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Date Issued Debt Rated Rating Trend Action Attributesi
US = Lead Analyst based in USA
CA = Lead Analyst based in
Unsolicited Participating With Access
Unsolicited Participating Without Access
07-Jul-22Issuer Rating A Stb Confirmed US 07-Jul-22Senior Secured Bonds A Stb Confirmed US
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