Press Release|CMBS
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KBRA Downgrades Four Ratings and Affirms One Rating for Atom Mortgage Securities DAC

17 Nov 2025   |   London

Contacts

KBRA UK (KBRA) downgrades the ratings on classes B, C, D and E and affirms the rating on class A of Atom Mortgage Securities DAC, a CMBS single-borrower transaction. Simultaneously, KBRA also removes all the ratings from Watch Downgrade where they were placed on 17 September 2025. The downgrades follow a surveillance review of the transaction, which has exhibited an increase in KLTV owing to increased vacancy within the portfolio, when compared to the prior review and since securitisation.

The transaction collateral at closing consisted of a £391.2 million limited recourse, first lien mortgage loan secured by the borrowers’ freehold interests in four office (92.2% of loan balance) and two industrial (7.8%) assets located in the United Kingdom (UK). Since the transaction closing date in September 2021, the loan has been paid down by £83.4 million due to the sale of the two industrial properties and one office property, leaving three collateral properties. As of the July 2025 IPD, the senior outstanding debt balance was £307.8 million. There is also £77.2 million of outstanding mezzanine debt that is held outside of the trust.

KBRA utilised information obtained from the trustee and servicer to analyse the remaining loan collateral. The analysis produced a KNCF of £19.9 million and KBRA value of £302.7 million (£312 per sf). The resulting in-trust KLTV is 101.7%, up from 90.5% at last review and 88.5% at securitisation. KBRA maintains a KPO of Underperform on the loan due to increased vacancy since last review and securitisation.

Details concerning the ratings adjustments are as follows:

Class A to AAA (sf) from AAA (sf) DN

Class B to AA (sf) from AAA (sf) DN

Class C to A (sf) from AA- (sf) DN

Class D to BBB- (sf) from BBB+ (sf) DN

Class E to BB- (sf) from BB+ (sf) DN

Note: This press release has been updated on 18 November 2025, following its initial publication on 17 November 2025, to reflect the removal of all the ratings from Watch Downgrade.

To access ratings and relevant documents, click here.

Click here to view the report.

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Methodologies

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.

This credit rating is endorsed by Kroll Bond Rating Agency Europe Limited for use in the European Union. Information on a credit rating’s endorsement status is available on its rating page at KBRA.com.

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.

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