KBRA Assigns Preliminary Ratings to Taurus 2019-1 FR DAC
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.
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.
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.
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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.
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Matthew Horner, Director, CMBS (Lead Analyst)
+353 1 669 2677
firstname.lastname@example.orgYee Cent Wong, Senior Managing Director, CMBS
+1 (646) 731-2374
email@example.comStephen Kemmy, Director, Structured Finance
+353 1 669 2678
firstname.lastname@example.orgKeith Kockenmeister, Senior Managing Director, CMBS (Rating Committee Chair)
+1 (646) 731-2349
KEYWORD: EUROPE IRELAND
INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE INSURANCE
SOURCE: Kroll Bond Rating Agency
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PUB: 03/20/2019 05:03 PM/DISC: 03/20/2019 05:03 PM