KBRA Upgrades Three Ratings and Affirms All Other Outstanding Ratings for Last Mile Securities - PE 2021 DAC
4 Apr 2024 | London
KBRA upgrades the ratings of three classes of notes and affirms all other outstanding ratings for Last Mile Securities – PE 2021 DAC, a CMBS single-borrower transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an improvement in performance resulting in a decrease in KLTV from the prior review and securitisation.
The collateral for the transaction is a single, limited recourse, first-lien mortgage loan secured by the borrower’s interests in 49 primarily industrial assets of which 44 are freehold, four leasehold, and one a combination of freehold and leasehold. Together, the properties comprise 659,123 square metres (sqm) and are located across the Netherlands and Germany.
Since the transaction closing date in April 2021, there was a principal distribution of €75,000 at the August 2021 IPD due to an initial over issuance at closing. This resulted in a pro-rata reduction of the Notes balance. There have been no property sales since closing and the loan balance remains at €383.5 million as of the current review.
KBRA utilised information obtained from the trustee and the servicer to analyse the loan collateral. The analysis produced a KNCF of €30.0 million and KBRA value of €418.3 million (€635 per sqm). The resulting in-trust KLTV is 91.7%, down from 92.2% at last review and from 106.5% at securitisation. KBRA revises the loan’s KPO from Perform to Outperform as a result of improved performance.
Details concerning the classes with rating changes are as follows:
- Class B to AA (sf) from AA- (sf)
- Class C to A (sf) from A- (sf)
- Class D to BBB (sf) from BBB- (sf)
To access rating and relevant documents, click here.
Click here to view the report.