Standard & Poor's downgraded two of the London Underground Limited's (LUL) public-private partnership securitizations, taking their ratings to just above junk. The drop in underlying ratings will not directly affect bondholders, although it does serve as a reminder that Metronet Rail has not yet dealt with the delays in its improvement programs, a problem that has plagued these deals for some time now.

The long-term debt rating on both the Metronet Rail BCV's and Metronet Rail SSL's senior secured bank loan were downgraded to BBB-' from BBB'. The deals' respective long-term underlying debt ratings on their index-linked bonds, and fixed-rate bonds, due 2032, were lowered to BBB-' from BBB'. The outlook is stable. Ambac Assurance and Financial Security Assurance provided the wrap for Metronet Rail BCV Finance and Metronet Rail SSL Finance.

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