o GBP237.8 million 2.187% index-linked guaranteed secured Bonds due 2041 (the "Bonds");

o GBP115.0 million index-linked senior secured loan facility due 2038 provided by the European Investment Bank (the "EIB Loan").

The rating outlook remains positive.

The Issuer is a special purpose vehicle which in May 2005 issued the Bonds and raised the EIB Loan and on-lent the proceeds to Healthcare Support (Newcastle) Limited ("Project Co"). Simultaneously, Project Co entered into a 38 year project agreement (the "Project Agreement") with the Newcastle upon Tyne Hospitals NHS Trust (which subsequently became the Newcastle upon Tyne Hospitals NHS Foundation Trust on 1 June 2006, the "Trust") in relation to the construction of new hospital facilities at the Trust's Freeman Hospital and Royal Victoria Infirmary sites, and the provision of certain services during the term of the Project Agreement, such works and services together, the "Project").

RATINGS RATIONALE

"Today's ratings upgrade to Baa2 from Baa3 reflects the significant de-risking of the project following completion of the most critical aspects of construction works and its transition to a more benign operational phase," says Andrew Davison, a Senior Vice President in Moody's Infrastructure Finance Group.

The Bonds and the EIB Loan benefit from unconditional and irrevocable guarantees of scheduled principal and interest from Syncora Guarantee (U.K.) Ltd ("Syncora", rated Ca/developing outlook, formerly XL Capital Assurance (U.K.) Ltd). The ratings of the Bonds and EIB Loan taking these financial guarantees into account are the higher of (i) Syncora's insurance financial strength rating; and (ii) the Baa2 underlying ratings. Accordingly the Bonds and EIB Loan are rated Baa2.

The Baa2 underlying ratings incorporate: (i) the phased completion of the most critical aspects of the construction works, and the Project's transition to steady-state operations, (ii) the Project's stable revenue stream, (iii) the credit profile, ability and experience of Interserve (Facilities Management) Ltd as hard facilities management contracter, and the benefit of a guarantee of its contractual obligations provided by Interserve Plc, (iv) high leverage which reduces Project Co's ability to withstand unexpected stress, (v) certain structural features which mitigate the risks of high leverage, (vi) a high expected recovery assumption in the event of termination of the Project, due to the nature of the termination payment regime, and (vii) the credit strength of the Trust's payment obligations under the Project Agreement, which are guaranteed by the Secretary of State for Health pursuant to a deed of safeguard.

The rating outlook is positive, which reflects our expectation that Project Co's operational performance will continue to be satisfactory.

The ratings may be upgraded as the Project transitions further to steady-state operations, and demonstrates a longer successful operating history. The underlying ratings may be downgraded if lifecycle cost assumptions were to prove inadequate, or if poor service delivery or a deterioration in Project Co's relationship with the Trust were to increase the possibility of a default under the Project Agreement.

The principal methodology used in this rating was Operating Risk in Privately-Financed Public Infrastructure (PFI/PPP/P3) Projects published in December 2007. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

Please see ratings tab on the issuer/entity page on Moodys.com for the last Credit Rating Action and the rating history.

The Issuer and Project Co are wholly owned by Healthcare Support (Newcastle) Holdings Ltd, which in turn is owned 20% by Interserve PFI 2003 Ltd (a wholly owned subsidiary of Interserve Plc, the UK-listed services, maintenance and building group), and 80% by Equion Health (Newcastle) Ltd, which is itself owned 18.75% by John Laing Social Infrastructure Ltd and 81.25% by Innisfree Nominees Ltd.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides relevant regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides relevant regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides relevant regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

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Andrew Davison Senior Vice President Infrastructure Finance Group Moody'sInvestors Service Ltd. One Canada SquareCanary WharfLondon E14 5FA United Kingdom JOURNALISTS: 44 20 7772 5456 SUBSCRIBERS: 44 20 7772 5454 Monica Merli MD - Infrastructure Finance Infrastructure Finance Group JOURNALISTS: 44 20 7772 5456 SUBSCRIBERS: 44 20 7772 5454 Releasing Office: Moody's Investors Service Ltd. One Canada SquareCanary WharfLondon E14 5FA United Kingdom JOURNALISTS: 44 20 7772 5456 SUBSCRIBERS: 44 20 7772 5454 (C) 2012 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights reserved.

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