KBRA Downgrades All Ratings for River Green Finance 2020 DAC
13 Jun 2025 | London
KBRA UK (KBRA) downgrades the ratings of four classes of River Green Finance 2020 DAC, a CMBS single borrower transaction. The rating actions follow a surveillance review of the transaction. The downgrades are the result of a significant decrease in KBRA’s net cash flow (KNCF) and value since securitization, the loan’s continued status as a specially serviced loan and its restructuring in August 2024. KBRA also considered tenant rollover risk related to the collateral property’s two tenants, Atos and EMC2 (Dell Technologies). The former is in arrears on a portion of its service charge and building maintenance expenses, while the latter has a lease expiring in October 2025.
The loan is collateralised by River Ouest, a seven-story office building and an adjacent two-story service/amenity building located in the commune of Bezons, France, within the Val-d’Oise department. The property is five kilometres north of La Défense and 18 kilometres northwest of central Paris. As of the April 2025 IPD, the total outstanding debt balance was €180.9 million (€2,815 per sqm), down 3.2% since the last review (€186.9 million) and down 7.8% from issuance (€196.2 million) due to a combination of scheduled amortization and cash sweep.
The loan transferred to special servicing on 15 January 2024 after the borrower did not exercise the loan’s second extension option and did not pay all amounts due. Following that, the loan was restructured on 7 August 2024, wherein the maturity date was extended to 15 April 2026 with the option to extend for another year to 15 April 2027. As of the April 2025 IPD, the loan continued to perform and all interest and principal due was paid in full.
KBRA analysed the cash flow for the property utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of €13.4 million and a KBRA value of €161.4 million (€2,510 per sqm). The resulting in-trust KLTV is 112.1%, up from 75.9% at securitisation. KBRA identified the loan as a KBRA Loan of Concern (K-LOC) and maintained the loan’s KBRA Performance Outlook (KPO) of Underperform due to its status with the special servicer and concerns surrounding the collateral property’s tenants.
Details for the classes with rating changes are as follows:
■ Class A to A (sf) from AA (sf)
■ Class B to BBB- (sf) from A- (sf)
■ Class C to BB- (sf) from BBB- (sf)
■ Class D to B- (sf) from B (sf)
To access ratings and relevant documents, click here.
Click here to view the report.