4.2.3  Likelihood of Authority Default

Please consider (See Refinancing Application Note):

i.  Authority Voluntary Termination - Long tern flexibility:

Does the Authority currently have Voluntary Termination rights under the existing contract? If not, has the Authority considered negotiating these rights as part of the refinancing?

ii.  Authority Default - Authority's ability to continue to make payments:

Please provide analysis of the Authority's current and short-medium term financial position and consider any risk of not being able to pay the Unitary Charge as it falls due. 

iii.  Please consider other events which may impact upon their ability, or desire, to pay the Unitary Charge in the future. The Authority should consider the probability of each event occurring and the Authority's view on the likely impact using the table below or similar in support of the analysis.