Kroll Bond Rating Agency Europe Limited (KBRA) is pleased to announce the assignment of preliminary ratings to four classes of Kanaal CMBS Finance 2019 DAC, a €278.4 million CMBS transaction collateralised by two loans. The loans are not cross-collateralised or cross-defaulted.
The Big 6 Loan is a €140.4 million floating rate loan that has a three-year term with two 12-month extension options. The loan is secured by the borrower's freehold interest in five retail properties and a mixed-use retail/office property located in six cities throughout the Netherlands. As of January 2019, the properties were 80.8% leased to approximately 200 tenants.
The Maxima Loan is a €138.0 million floating rate loan that has a four-year term with no extension options. The loan is secured by the borrower's freehold and leasehold interests in 11 properties (7 office, 3 mixed-use, and 1 logistics property) located in six cities throughout the Netherlands. As of January 2019, the properties were 84.4% leased to approximately 30 tenants.
KBRA's analysis of the transaction included a detailed evaluation of the property's cash flows and the application of our European CMBS Rating Methodology. The results of our analysis yielded a KBRA net cash flow (KNCF) of €27.9 million, capitalisation rates ranging from 6.25% to 9.50%, a KBRA Value of €358.3 million, and a KBRA Loan to Value (KLTV) of 77.7%. In our analysis of the transaction, we also reviewed and considered third-party technical, environmental, and valuation reports; the results of our site inspections of the properties; and legal documentation.
For further details on KBRA's analysis, please see our pre-sale report, entitled Kanaal CMBS Finance 2019 DAC, which was published at www.kbra.com
The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.
Disclosures
Further disclosures relating to this rating action are available in the EU Information Disclosure Form. Additional information regarding KBRA policies, methodologies, rating scales, and disclosures are available at www.kbra.com
To access ratings, reports and disclosures, click here
Related Publications: (available at www.kbra.com
- Kanaal CMBS Finance 2019 DAC Pre-Sale Report
- European CMBS Rating Methodology
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About KBRA and KBRA Europe
KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus, is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190319005892/en/
Contacts:
Analytical Contacts:
Matthew Horner, Director, CMBS (Lead Analyst)
Dublin
+353 1 669 2677
mhorner@kbra.com
Yee Cent Wong, Senior Managing Director, CMBS
New York
+1 (646) 731-2374
ywong@kbra.com
Stephen Kemmy, Director, Structured Finance
Dublin
+353 1 669 2678
skemmy@kbra.com
Keith Kockenmeister, Senior Managing Director, CMBS (Rating Committee Chair)
New York
+1 (646) 731-2349
kkockenmeister@kbra.com
Erika Hinman, Associate Director, CMBS
New York
+1 (646) 731-2418
ehinman@kbra.com
