KBRA Assigns Preliminary Ratings to River Green Finance 2020 DAC

DUBLIN–(BUSINESS WIRE)–Kroll Bond Rating Agency Europe Limited (KBRA) is pleased to announce the assignment of preliminary ratings to four classes of River Green Finance 2020 DAC, a CMBS single-borrower securitisation.

The collateral for the transaction is a €196.2 million limited recourse loan. The floating rate loan has an initial three-year term with two, one-year extension options. The loan is comprised of the Facility A Loan (€35.8 million) and the Facility B Loan (€160.4 million). The Facility B Loan is primarily secured by the mortgage of the borrower’s freehold interest in the River Ouest property, whereas the Facility A Loan is primarily secured by shares in the Facility B borrower.

River Ouest is comprised of a seven-story office building and an adjacent two-story amenity building located in the commune of Bezons, France, within the Val-d’Oise department and approximately five kilometres north of La Défense and 18 kilometres northwest of central Paris. The property was built in 2009 and totals 64,278 sqm. As of July 2019, the subject was 98.4% leased to three information technology tenants: Atos (83.4% of gross rental income), Dell Technologies (14.6%), and Sophos (1.9%). The property serves as the global headquarters for Atos.

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 €19.4 million. To value the property, we applied a capitalisation rate of 7.50% to arrive at a KBRA Value of €258.4 million and a KBRA Loan to Value (KLTV) of 75.9%. In our analysis of the transaction, we also reviewed and considered third-party technical, environmental, and valuation reports; the results of our site inspection of the subject; and legal documentation.

To access the full report, click here.

To access ratings, reports and disclosures, click here.

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.

Related Publications: (available at www.kbra.com)

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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. KBRA is also 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.

Contacts

Analytical Contacts:
Matthew Horner, Director, CMBS (Lead Analyst)

Dublin

+353 1 588 1240

mhorner@kbra.com

John Hogan, Senior Director, Ratings Legal

London

+44 208 148 1040

jhogan@kbra.com

Yee Cent Wong, Senior Managing Director, CMBS

New York

+1 (212) 731-2374

ywong@kbra.com

Eric Thompson, Senior Managing Director, Real Estate Finance Group (Rating Committee Chair)

New York

+1 (212) 731-2355

ethompson@kbra.com

Business Development Contact:
Mauricio Noé, Senior Managing Director, Head of Europe

+44 208 148 1010

mnoe@kbra.com

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