DUBLIN--(BUSINESS WIRE)--Kroll Bond Rating Agency Europe Limited (KBRA) is pleased to announce the assignment of preliminary ratings to eight classes of Usil (European Loan Conduit No. 36) DAC, a CMBS single-borrower securitisation.
The collateral for the transaction consists of a €723.9 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 100 industrial assets located in Germany. The largest asset is 6.7% by allocated loan amount, while the 10 largest assets (36.8%) are just over one-third of the pool. The properties are leased to approximately 1,100 individual tenants, of which the largest represents 4.3% of total contract rent and the top 10 represent 18.1%. Most tenants are local or regional firms.
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 €48.0 million, individual property capitalisation rates of 6.00% to 9.50%, a KBRA Value of €722.2 million, and a KBRA Loan to Value (KLTV) of 100.2%. 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)
- Usil (European Loan Conduit No. 36) DAC Pre-Sale Report
- European CMBS Rating Methodology
- Global Structured Finance Counterparty Methodology
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.