DUBLIN--(BUSINESS WIRE)--Kroll Bond Rating Agency Europe Limited (KBRA) is pleased to announce the assignment of preliminary ratings to five classes of TAURUS 2019-3 UK DAC, a CMBS single-borrower securitisation.
The collateral for the transaction is a £244.4 million pari passu portion of a £418.6 million limited recourse, first lien mortgage loan. The floating rate loan has a two-year initial term with three, one-year extension options. The loan is secured by the borrower’s interests in 21 purpose-built student accommodations (PBSA). Together, the properties comprise 8,055 beds and are located across 10 cities (seven regions) throughout the UK, with the top five cities being Glasgow (20.8% of loan balance), Sheffield (12.7%), Birmingham (12.5%), Liverpool (10.7%), and Aberdeen (9.6%).
KBRA’s analysis of the transaction included a detailed evaluation of the properties’ cash flows and the application of our European CMBS Rating Methodology. The results of our analysis yielded a KBRA net cash flow (KNCF) of £30.7 million, individual capitalisation rates ranging from 6.75% to 8.00%, a KBRA Value of £442.2 million, and a KBRA Loan to Value (KLTV) of 94.7%. 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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Related Publications: (available at www.kbra.com)
- TAURUS 2019-3 UK DAC Pre-Sale Report
- European CMBS Rating Methodology
- Global Structured Finance Counterparty Methodology
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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.