Coventry & Rugby Hospital Company PLC (51VZ), the special purpose vehicle behind a major private finance initiative hospital project in the UK Midlands, has announced the resignation of BDO LLP as its auditor with effect from 19 October 2026. BDO cited a reassessment of the risks associated with auditing the issuer as the reason for its departure. The company, which is the issuer of £407,239,000 in index-linked guaranteed secured bonds due 2040, is now actively seeking a replacement auditor ahead of its 31 December 2026 year-end. Bondholders have been urged to consult professional advisers if uncertain about the implications of this development.

Key Points

  • Coventry & Rugby Hospital Company PLC (51VZ) is a UK special purpose bond issuer tied to a PFI hospital project
  • BDO LLP has resigned as auditor effective 19 October 2026, following a risk reassessment under Section 519 of the Companies Act 2006
  • The company has issued £407,239,000 in 3.246% index-linked secured bonds maturing 30 June 2040, guaranteed by Assured Guaranty UK Limited
  • Investors and bondholders should monitor whether a replacement auditor is confirmed ahead of the 31 December 2026 period-end

BDO LLP Resigns After Reassessing Audit Risks at Coventry & Rugby Hospital Company PLC

The announcement states that BDO LLP notified the issuer of its resignation in accordance with Section 519 of the Companies Act 2006, with the resignation taking effect on 19 October 2026. BDO concluded, following an internal reassessment, that it was appropriate to cease acting as auditor. The announcement does not elaborate on the specific nature of the risks identified during that reassessment. The company did not disclose this figure in the announcement regarding any costs or financial impacts arising directly from the auditor change. The resignation marks a significant operational development for a company whose primary function is to service long-dated bond obligations underpinned by a financial guarantee.

£407 Million Index-Linked Bond Structure and Assured Guaranty UK Guarantee Remain in Place

Coventry & Rugby Hospital Company PLC is the issuer of £407,239,000 in 3.246 per cent index-linked guaranteed secured bonds due 30 June 2040, which includes £35,000,000 of variation bonds, with authority to issue further bonds. Scheduled payments of principal and interest on these bonds are unconditionally and irrevocably guaranteed under a financial guarantee policy originally issued by MBIA Assurance S.A., now succeeded by Assured Guaranty UK Limited. The bonds carry ISIN XS0159152189. The structured nature of this vehicle means that bondholder protections are layered, though the auditor vacancy introduces a procedural gap that investors may be watching closely.

Issuer Actively Seeking New Auditor for 31 December 2026 Year-End Period

The company confirmed in its announcement that it is actively working to engage a replacement auditor in time for the audit covering the period ending 31 December 2026. The issuer stated it will provide updates as appropriate. The contact listed for the issuer is Scott Humphrey, Project Co. Representative at the Vercity Group, based at 8 White Oak Square, Swanley, Kent. The ability to appoint a qualified auditor promptly will be a key operational milestone for the company, given its obligations to bondholders and the requirements associated with maintaining compliant financial reporting for a publicly listed bond vehicle of this scale.