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KBRA Downgrades All Ratings for Salus (European Loan Conduit No.33) DAC

13 Mar 2026   |   London

Contacts

KBRA UK (KBRA) downgrades all outstanding ratings for Salus (European Loan Conduit No.33) DAC. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in KLTV from the prior review and securitisation. The borrower did not repay the loan at its January 2024 maturity and subsequently extended the loan to January 2028 (with final note maturity in January 2032), providing additional time to refinance the property. The borrower’s attempts to market the property for sale in 2024 and 2026 were unsuccessful, with bids reportedly below the sponsor’s target price.

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 2026 IPD, the total senior debt balance was £363.3 million (£517 per sf). There is also £98.4 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 £22.9 million and KBRA value of £320.9 million (£456 per sf). The resulting in-trust KLTV is 113.2%, up from 104.4% at last review, and 74.8% at securitisation. KBRA maintains the loan as a K-LOC and maintains its KPO of Underperform.

Details concerning the ratings adjustments are as follows:

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

Class B to BBB- (sf) from BBB (sf)

Class C to BB- (sf) from BB (sf)

Class D to B- (sf) from B (sf)

To access ratings and relevant documents, click here.

Click here to view the report.

Related Publication

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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