FitchRatings Commentary published the following post on 17/09/2021.

"Fitch Affirms Transport for London at 'A+": Outlook Stable.

Fitch Ratings - London - 17 Sep 2021: Fitch Ratings has affirmed Transport for London's (TL) Long-Term Foreign- and

Local-Currency Issuer Default Ratings (IDs) at 'A+'. The Outlooks are Stable.

The affirmation reflects Fitch's expectations that TfL's credit metrics will remain compatible with the rating, despite the

impact of the Covid-19 pandemic in FY21.

Fitch rates TfL using its Government-Related Entities (GRE) Criteria. The assessment of support by the company's sponsor,

the UK sovereign (AA-/Stable), combined with the distance between the sponsor's rating and the company's Standalone

Credit Profile (SCP; bbb+), results in the application of a top-down minus one approach.

Tf has a key public mission in the UK capital, as infrastructure and operations manager of almost all public

transportation..

Using the above information, fully answer the following questions.

i) What do you expect will happen to the yield of the Tf bonds? ii) As a fixed-income expert, what is the advice you would give to your investor? Should she invest in TfL bonds or

not?

The rating issued to TfL is A+