KBRA Resolves Watches and Upgrades Three Ratings and Affirms Remaining Rating of Taurus 2021-4 UK DAC
21 May 2024 | London
KBRA upgrades the ratings of three classes of notes and affirms the remaining rating of Taurus 2021-4 UK DAC, a CMBS transaction. The ratings of Class C and D are simultaneously removed from Watch Upgrade (UP), where they were placed on 28 February 2024 due to the deleveraging of the transaction after the prepayment of the Fulham Loan. The rating actions follow a surveillance review of the transaction, which has deleveraged and exhibited an improvement in performance since securitisation, resulting in a decrease in KLTV.
At closing, the transaction consisted of two non-crossed, limited recourse, first-lien mortgage loans: Fulham and United VI. The £633.2 million Fulham Loan was secured by the borrowers’ freehold (249 properties) and leasehold (26) interests in 257 industrial assets, 16 parcels of land, and two office assets located in the United Kingdom (UK). The loan was repaid in full and the related proceeds were applied against the outstanding notes’ balance at the February 2024 NPD, resulting in the pay-off in full of the Class A and B notes. The remaining £210.9 million United VI Loan is secured by the borrowers' freehold (37), leasehold (10), and combination of freehold and leasehold (two) interests in 49 industrial assets located in the UK. There have been no property sales since closing and the United VI Loan balance remains at £210.9 million as of the current review.
KBRA analysed the cash flow for the properties utilising information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of £15.4 million and KBRA value of £237.8 million (£81 per sf). The resulting in-trust KLTV is 88.7%, slightly higher than 88.1% at last review and lower than 97.1% at securitisation. KBRA maintains a KPO of Perform on the loan.
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