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KBRA Downgrades All Ratings for Taurus 2020-1 NL DAC

9 Feb 2026   |   London

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KBRA UK (KBRA) downgrades the ratings of all classes of notes for Taurus 2020-1 NL DAC, a CMBS single-borrower transaction. KBRA simultaneously removes all ratings from Watch Downgrade where they were placed in December 2025. The rating actions follow a surveillance review of the transaction. The downgrades reflect the transaction’s failure to refinance by the extended loan maturity in February 2026, as well as a decline in KNCF, which has resulted in higher KLTVs relative to both the last review and securitisation. While overall occupancy of the remaining properties has improved, KNCF has continued to weaken due to higher operating expenses.

The December 2025 restructuring extended the senior loan maturity to February 2029, with an extension option to February 2030. Consistent with this, the expected note maturity is February 2029, or February 2030 if the loan extension is exercised, while the final note maturity dates are February 2034 and February 2035, respectively.

In addition, despite continued asset disposals of 7 properties since the last review and 80 properties since securitisation, the remaining portfolio of 25 properties has become increasingly concentrated in secondary office assets, predominantly located in Amsterdam and surrounding submarkets.

While overall office leasing activity continues, market conditions remain characterised by a flight to quality, with tenant demand becoming more selective across locations and building specifications. As a result, approximately 34% (by ALA) of the remaining portfolio exhibit persistent vacancy with vacancy levels exceeding 30% since the last review.

These pressures are further influenced by the modification terms introduced under the December 2025 restructuring. While the issuer-level amendments extended note maturities, the transaction did not incorporate a shift to full sequential amortisation, and release premiums on asset disposals were removed, with proceeds now limited to 100% of ALA (any excess disposal proceeds will be transferred to the cash trap account). Principal receipts continue to be allocated on a modified pro rata basis, with sequential application limited to specific circumstances, including when the senior loan balance falls below 35% of its original amount, when cash trap amounts are applied in prepayment of the loan, or following the occurrence of a sequential payment trigger event.

At closing, the transaction collateral consisted of a €653.3 million limited-recourse, first-lien mortgage loan, together with an unfunded €67.0 million pari passu capital expenditure (capex) facility. The loan was secured by the borrowers’ freehold and leasehold interests in 105 properties across 10 market areas in the Netherlands. As of November 2025, 77 property releases have reduced the portfolio to 28 properties and lowered the outstanding loan balance by 51.2% to €318.6 million, while the capex facility has declined to €31.4 million. In addition to the €349.9 million total senior loan, €58.6 million of mezzanine debt remains outstanding and is held outside the trust.

Since the release of the November 2025 servicer report, 3 further property disposals have occurred, resulting in 25 properties remaining in the portfolio consisting of 24 office buildings and one car park. The properties are in four market areas in the Netherlands, the largest being Amsterdam (53.7% of loan balance). They are leased to nearly 221 tenants.

KBRA utilised information obtained from the trustee and the servicer to analyse the remaining loan collateral as of the November 2025 servicer report and the further property disposals included above. The analysis produced a KNCF of €18.6 million and a KBRA value of €278.9 million (€1,539 per sqm). The resulting KLTV is 121.1%, compared to 119.5% at last review and 96.5% at securitisation. The portfolio is 75.1% leased after adjusting for tenants that have given notice of their intention to vacate, up from 66.8% at last review and down from 84.0% at closing. A Cash Trapping Event has been in effect since the November 2022 IPD. KBRA maintains the loan as a K-LOC.

Details for classes with rating changes are as follows:

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

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

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

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

Class E to CCC (sf) from B- (sf) DN

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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