KBRA Assigns Preliminary Ratings to Pembroke Property Finance 3 DAC

LONDON--(BUSINESS WIRE)--KBRA UK (KBRA) is pleased to announce the assignment of preliminary ratings to six classes of Pembroke Property Finance 3 DAC, a €343.6 million multi-borrower CMBS securitisation collateralised by 110 loans secured by 234 properties. The loans are part of 68 different risk groups, and each risk group may contain one or more loans to a related borrower.

The collateral properties are located throughout the Republic of Ireland, with a concentration in Dublin (41.7%). The pool has exposure to most major property types, with five types representing more than 10.0% of the pool balance: retail (25.2%), industrial (20.9%), hotel (20.7%), multifamily (14.4%), and office (13.4%). The loans have principal balances ranging from €12,672 to €19.7 million, with an average size of €3.1 million.

KBRA analysed this transaction primarily using our European CMBS Rating Methodology, which includes our evaluation of the underlying collateral properties' financial and operating performance, to determine KBRA’s estimate of sustainable net cash flow (KNCF) and KBRA value. On an aggregate basis, KNCF was 24.5% less than the issuer cash flow. KBRA capitalisation rates were applied to each asset’s KNCF to derive values that were, on an aggregate basis, 41.9% less than third party appraisal values. The pool has an in-trust KLTV of 104.9%.

To access ratings and relevant documents, click here.

Click here to view the report.

Methodologies

• CMBS: European CMBS Rating Methodology
• Structured Finance: Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

There are certain issuers, entities or transactions rated by KBRA Europe or KBRA UK that may be or have relationships with Shareholders and/or Shareholder-Related Companies, as that term is defined in KBRA’s Shareholder and Shareholder Related Companies for KBRA Europe and KBRA UK Policy and Procedure. Relevant disclosure information may be found here.

About KBRA UK

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Kroll Bond Rating Agency UK is located at 1 Connaught Place, 2nd Floor London, England.

Doc ID: 1007592