KBRA Places the Ratings of all Classes of Taurus 2021-2 SP DAC on Watch Developing
13 Sep 2024 | London
KBRA places the ratings for all classes of the Taurus 2021-2 SP DAC transaction on Watch Developing. The Watch actions are driven by uncertainty regarding the status of the related senior loan's upcoming final maturity date.
The related senior loan has a fully extended final maturity date of 16 September 2024. A noteholders' meeting was held on 12 September 2024 where the relevant parties met to consider a restructuring of the related loan including: an extension of the maturity date by three years until 16 September 2027, an increase in the senior loan margin, and a €15.0 million loan prepayment as a condition to effect the restructuring, among other considerations. While the outcome of the meeting has not been made available, there is uncertainty regarding the status of the loan as of the upcoming final maturity date.
The CMBS transaction is comprised of a portion of a limited recourse, first lien mortgage loan secured by the borrowers' freehold interests in seven office assets in Spain, located in Madrid (95.4% of loan balance) and Barcelona (4.6%). In November 2022, KBRA revised the KPO of the related loan to Underperform following a sensitivity analysis to assess the potential impact of the deteriorating economic environment at the time. KBRA has maintained the KPO of Underperform since that time due to the related loan's continued low interest coverage ratio.
KBRA will continue to monitor the transaction and proposed loan restructuring and will seek to resolve or update the Watch Developing status within 90 days by applying KBRA's relevant methodologies.
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