DUBLIN–(BUSINESS WIRE)–Kroll Bond Rating Agency Europe Limited (KBRA) is pleased to announce
the assignment of preliminary ratings to seven classes of Scorpio
(European Loan Conduit No. 34) DAC, a CMBS single-borrower
securitisation.
The collateral for the transaction is a £236.4 million pari passu
portion of a £286.4 million limited recourse, first lien mortgage loan.
The floating rate loan has a two-year initial term with three extension
options (two one-year options plus an 18-month option). The loan is
secured by the borrower’s interests in 112 assets, most of which are
‘last mile’ industrial warehouse properties. The largest asset is 6.5%
by ALA, while the 10 largest assets are just over one-third (36.5%) of
the pool. The properties are leased to approximately 850 individual
tenants, of which the largest represents only 2.6% of passing rent and
the top 10 represent 12.1%. Most tenants are local or regional firms
based in the UK.
KBRA’s analysis of the transaction included a detailed evaluation of the
property’s cash flows and the application of our European
CMBS Rating Methodology. The results of our analysis yielded a
KBRA net cash flow (KNCF) of £23.7 million, individual property
capitalisation rates ranging from 6.00% to 13.50%, a KBRA Value of
£319.5 million, and a KBRA Loan to Value (KLTV) of 89.6%. In our
analysis of the transaction, we also reviewed and considered third-party
technical due diligence, environmental, and valuation reports; the
results of our site inspections; and legal documentation.
To access the full report, click here.
Disclosures
Further disclosures relating to this rating action are available in the EU
Information Disclosure Form. Additional information regarding
KBRA policies, methodologies, rating scales and disclosures are
available at www.kbra.com.
To access ratings, reports and disclosures, click here.
Related Publications: (available at www.kbra.com)
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About KBRA and KBRA Europe
KBRA is a full-service credit rating agency registered with the U.S.
Securities and Exchange Commission as an NRSRO. In addition, KBRA is
designated as a designated rating organization by the Ontario Securities
Commission for issuers of asset-backed securities to file a short form
prospectus or shelf prospectus. KBRA is also recognized by the National
Association of Insurance Commissioners as a Credit Rating Provider, and
is a certified Credit Rating Agency (CRA) by the European Securities and
Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is
registered with ESMA as a CRA.
Contacts
Analytical Contacts:
Matthew
Horner, Director, CMBS (Lead Analyst)
Dublin
+353 1 669 2677
[email protected]
Patrick McQuinn, Director, CMBS
New York
+1 (646) 731-2445
[email protected]
Yee Cent Wong, Senior Managing Director, CMBS
New York
+1
(646) 731-2374
[email protected]
Eric Thompson, Senior Managing Director, Real Estate Finance Group
(Rating Committee Chair)
New York
+1 (646) 731-2355
[email protected]
