This document describes KBRA’s methodology for rating data center asset backed securities (ABS) transactions. The methodology is intended for use where the transaction features ABS-style structures and mechanisms, generally as follows:
The structure typically features an anticipated repayment date (ARD) with amortization triggers that divert excess cash flow and any proceeds from sales of the underlying properties (if applicable) with the intention to pay down the securities in full by their legal final maturity dates.
The collateral typically includes title to cash flowing real property interests, along with mortgages on the properties. The real property interests may include fee ownership where the issuer owns both the land and the building, or a leasehold interest where the issuer leases the building or its portion from another entity. Additional collateral typically includes the assignment of customer contracts, tenant leases and other…
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