KBRA Downgrades All Ratings for Salus (European Loan Conduit No.33) DAC
28 Apr 2025 | London
KBRA UK (KBRA) downgrades all outstanding ratings for Salus (European Loan Conduit No.33) DAC. Simultaneously, KBRA removes the Watch Developing (DEV) placement from all classes, where they were placed on 19 December 2024. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in KLTV from the prior review and securitisation. In addition, the borrower failed to repay the loan at its 22 January 2024 final maturity and has since executed amendments that extend the final loan maturity to 20 January 2028 and final note maturity to 23 January 2032.
The transaction collateral is a single, limited recourse, first lien mortgage loan secured by the borrower’s freehold and long leasehold interests in City Point, a 703,258 sf office building. The property is located on Ropemaker Street in the City of London. As of January 2025 IPD, the total senior debt balance was £363.3 million (£516 per sf). There is also £91.9 million of outstanding mezzanine debt that is held outside the trust.
KBRA utilised information obtained from the trustee and servicer to analyse the loan collateral. The analysis produced a KNCF of £21.7 million and KBRA value of £347.3 million (£494 per sf). The resulting in-trust KLTV is 104.4%, up from 97.9% at last review, and 74.8% at securitisation. KBRA identified the loan as a K-LOC and maintains its KPO of Underperform on the loan.
Details concerning the ratings adjustments are as follows:
- Class A to AA (sf) from AAA (sf) DEV
- Class B to BBB (sf) from A- (sf) DEV
- Class C to BB (sf) from BBB- (sf) DEV
- Class D to B (sf) from BB- (sf) DEV
To access ratings and relevant documents, click here.
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