Press Release|CMBS
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KBRA Places All Ratings of Taurus 2020-1 NL DAC on Watch Downgrade

15 Dec 2025   |   London

Contacts

KBRA UK places the ratings of all classes of notes for Taurus 2020-1 NL DAC, a CMBS single-borrower transaction, on Watch Downgrade (DN).

The Watch action considers the borrower’s inability to refinance the loan arising from the continuing weakened collateral performance, which also led to the recent restructuring of the senior loan and associated modification of the notes’ maturity date.

The transaction is currently collateralised by 29 properties (27 offices and 2 car parks) in the Netherlands, which has reduced from 105 properties (73 offices, 29 industrial assets, and 2 car parks) at issuance, primarily due to property disposals and associated paydowns.

Based on the remaining portfolio, as several property sales have occurred since issuance, Q3 2025 tenancy data provided by the servicer indicates that the portfolio is 75.6% leased (after adjusting for tenants who have provided notice to vacate), up from 68.1% at the previous review but down from 87.3% at issuance. The latest valuation report (March 2025) indicates a 4.4% decline compared with the June 2024 valuation and a decline of 16.9% from the valuation at issuance in 2020, for the remaining assets.

The August 2025 investor report shows that the transaction remains in cash trap, with a debt yield of 6.8%, which is below the 8.3% trigger. The cash trap account held €12.4 million, although the restructuring requires that €23.5 million be maintained in the account.

The portfolio’s credit profile remains constrained by weak cash flow generation, elevated leverage, and refinancing challenges. Following noteholder approvals on 8 December 2025, and the loan restructuring becoming effective on 9 December 2025, the senior loan’s original February 2026 final maturity was extended to February 2029, with an additional extension option to February 2030. The Expected Note Maturity Date was extended to February 2029 (or February 2030 if extended), and the Final Note Maturity Date was extended to February 2034 (or February 2035 if the extension option is exercised). From February 2026, the loan margin will increase, the quarterly extension fee will be removed, Revenue Excess Amounts will be introduced, Class X interest will cease, and the Class X Interest Diversion Ledger will be redirected to ongoing issuer costs and interest on the notes and Issuer Loan.

The Watch Downgrade also reflects KBRA’s expectation of receiving updated leasing and cash flow information in line with the November 2025 investor reporting to assess the impact of the amended structure and the borrower’s capacity to achieve more sustainable operating performance.

KBRA will continue to monitor the transaction and underlying loan performance, with the aim of resolving or updating the Watch Downgrade status within 90 days.

Details concerning the classes with ratings placed on Watch Downgrade are as follows:

  • Class A to AA- (sf) DN from AA- (sf)
  • Class B to A- (sf) DN from A- (sf)
  • Class C to BBB- (sf) DN from BBB- (sf)
  • Class D to B (sf) DN from B (sf)
  • Class E to B- (sf) DN from B- (sf)

To access ratings and relevant documents, click here.

Related Publication

Methodologies

Disclosures

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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