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KBRA Assigns Preliminary Ratings to Taurus 2019-1 FR DAC

March 20, 2019

DUBLIN--(BUSINESS WIRE)--Mar 20, 2019--Kroll Bond Rating Agency Europe Limited (KBRA) is pleased to announce the assignment of preliminary ratings to five classes of Taurus 2019-1 FR DAC, a CMBS single-borrower securitisation.

The collateral for the transaction is a €249.6 million limited recourse, first lien mortgage loan. The floating rate loan has a five-year term with no extension options. The loan is secured by the borrower’s interests in 206 assets, most of which are mixed-use assets with office and Local Technical Area (“LTA”) uses located throughout France. LTAs are warehouse areas used for service vehicles, storage, and workshops.

As of November 2018, the portfolio was 95.4% occupied by six tenants. The properties are primarily leased to Électricité de France (“EDF”) and ENEDIS, a wholly-owned subsidiary of EDF, an electric utility company largely owned by the French government. These two entities together account for 98.0% of the portfolio’s gross passing rent. KBRA performed an internal credit assessment of these entities and determined that they have credit characteristics consistent with a high investment grade rating.

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 €20.7 million, capitalisation rates ranging from 5.25% to 12.50%, a KBRA Value of €273.5 million, and a KBRA Loan to Value (KLTV) of 91.3%. 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 inspection of the subject; and legal documentation.

For further details on KBRA’s analysis, please see our pre-sale report, entitled Taurus 2019-1 FR DAC, which was published at www.kbra.com.

The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.

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.

Related Publications: (available at www.kbra.com )

To access ratings, reports and disclosures, click here.

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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, is 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.

View source version on businesswire.com:https://www.businesswire.com/news/home/20190320005812/en/

CONTACT: Analytical:

Matthew Horner, Director, CMBS (Lead Analyst)

Dublin

+353 1 669 2677

mhorner@kbra.comYee Cent Wong, Senior Managing Director, CMBS

New York

+1 (646) 731-2374

ywong@kbra.comStephen Kemmy, Director, Structured Finance

Dublin

+353 1 669 2678

skemmy@kbra.comKeith Kockenmeister, Senior Managing Director, CMBS (Rating Committee Chair)

New York

+1 (646) 731-2349

kkockenmeister@kbra.com

KEYWORD: EUROPE IRELAND

INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE INSURANCE

SOURCE: Kroll Bond Rating Agency

Copyright Business Wire 2019.

PUB: 03/20/2019 05:03 PM/DISC: 03/20/2019 05:03 PM

http://www.businesswire.com/news/home/20190320005812/en