Debt Investors

stock exchange

Introduction

In April 2006, Aspire Defence Finance PLC, which acts as the financing conduit for the group, issued two series of Guaranteed Secured Bonds due 2040 totalling £1.768 billion (including £230 million of Authority Variation Bonds and £75 million of Rescue Variation Bonds that have yet to be sold into the secondary market). Both series carry a coupon of 4.674% and have identical terms, save that Series A is guaranteed by Ambac Assurance UK Limited and Series B is guaranteed by MBIA UK Insurance Limited. The prospectus dated 31 March 2006 contains detailed information regarding the Bonds and the Project.

Both Ambac and MBIA make extensive financial disclosures which can be obtained at www.ambac.com and www.mbia.com respectively.

Aspire Defence regularly reports to Ambac and MBIA and rating agencies on the Project’s progress, and provides certain certifications to the Bond Trustees. Copies of the annual certification and reports have also been made available here to debt investors.

Standard & Poor’s have assessed the Project’s underlying credit rating as BBB- with a stable outlook. There has been no change to the Standard & Poor’s view of the underlying rating or outlook since the Project commenced in April 2006. Periodic updates to their analysis can be obtained from www.standardandpoors.com.

Moody’s have assessed the Project’s underlying credit rating as Baa2 with a stable outlook, following an upward revision on 22 October 2009 from its previous rating of Baa3 also with a stable outlook. Periodic updates to their analysis can be obtained from www.moodys.com. The 22 October 2009 press release can be obtained from http://www.moodys.com/moodys/cust/research/MDCdocs/22/2007400000651647.asp?namedEntity=Rating+Action&doc_id=2007400000651647&frameOfRef=corporate