22.05.13
Credit rating franchise requirement considered
FirstGroup could face possible exclusion from bidding for future franchises, if it loses its 'investment grade' credit rating.
The Government is considering changes to the franchising rules that could make the rating a requirement for any bidder, the Financial Times has reported. A change in requirements could deter over-bidding and protect the taxpayers from default, following the West Coast debacle last year.
FirstGroup currently has a rating of triple B minus.
The other three UK-listed transport groups, Go-Ahead, National Express and Stagecoach, all have low investment grade credit ratings similar to FirstGroup.
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(Image: Philip Toscano/PA Wire)