KBRA Assigns Preliminary Ratings to Scorpio (European Loan Conduit No. 34) DAC
DUBLIN--(BUSINESS WIRE)--May 15, 2019--
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.
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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. 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.
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CONTACT: Analytical Contacts:
Matthew Horner, Director, CMBS (Lead Analyst)
+353 1 669 2677
firstname.lastname@example.orgPatrick McQuinn, Director, CMBS
+1 (646) 731-2445
email@example.comYee Cent Wong, Senior Managing Director, CMBS
+1 (646) 731-2374
firstname.lastname@example.orgEric Thompson, Senior Managing Director, Real Estate Finance Group (Rating Committee Chair)
+1 (646) 731-2355
KEYWORD: EUROPE IRELAND
INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE
SOURCE: Kroll Bond Rating Agency Europe Limited
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PUB: 05/15/2019 10:00 AM/DISC: 05/15/2019 10:01 AM