KBRA Assigns Preliminary Ratings to TAURUS 2019-3 UK DAC

DUBLIN--()--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.

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:
Matthew Horner, Director, CMBS (Lead Analyst)
Dublin
+353 1 588 1240
mhorner@kbra.com

Patrick McQuinn, Director, CMBS
New York
+1 (646) 731-2445
pmcquinn@kbra.com

Yee Cent Wong, Senior Managing Director, CMBS
New York
+1 (646) 731-2374
ywong@kbra.com

Eric Thompson, Senior Managing Director, Real Estate Finance Group (Rating Committee Chair)
New York
+1 (646) 731-2355
ethompson@kbra.com

Contacts

Analytical:
Matthew Horner, Director, CMBS (Lead Analyst)
Dublin
+353 1 588 1240
mhorner@kbra.com

Patrick McQuinn, Director, CMBS
New York
+1 (646) 731-2445
pmcquinn@kbra.com

Yee Cent Wong, Senior Managing Director, CMBS
New York
+1 (646) 731-2374
ywong@kbra.com

Eric Thompson, Senior Managing Director, Real Estate Finance Group (Rating Committee Chair)
New York
+1 (646) 731-2355
ethompson@kbra.com