KBRA Affirms All Ratings for Highways 2021 PLC
20 Nov 2024 | London
KBRA UK (KBRA) affirms all of its outstanding ratings for Highways 2021 PLC, a CMBS single-borrower transaction. The affirmations follow a surveillance review of the transaction, which has exhibited a decrease in KLTV from securitisation. However, the magnitude of the change does not warrant rating changes at this time.
The transaction collateral consists of a £264.5 million limited recourse, first lien mortgage loan secured by the borrowers’ freehold (seven properties) and freehold and leasehold (one) interests in eight motorway service areas (MSAs) located in the United Kingdom (UK). The portfolio has a combined lettable area of 199,925 sf, is let to the tenant Welcome Break, and is currently 100% occupied, which has remained consistent since closing.
KBRA utilised information from the trustee and servicer to analyse the loan collateral. The analysis produced a KNCF of £19.4 million and KBRA value of £297.8 million (£1,490 per sf). The resulting in-trust KLTV is 88.8%, down from 93.0% at last review and securitisation. KBRA maintains a KPO of Perform on the loan.
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