Press Release|CMBS
View PDF

KBRA Downgrades All Ratings for Taurus 2020-1 NL DAC

20 Mar 2025   |   London

Contacts

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 2024. The rating actions follow a surveillance review of the transaction. The downgrades are based on a decline in KNCF and value for the remaining collateral properties, resulting in a significant increase in KLTV from last review and securitisation. KBRA also considered the sponsor’s request in December 2024 to modify and extend the loan term prior to the February 2025 final maturity date, and the likelihood the borrower will continue to face challenges refinancing the loan at its modified maturity in February 2026, as well as the high concentration of office properties within the portfolio.

The transaction collateral at closing consisted of a €653.3 million limited recourse, first lien mortgage loan. There was also 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 throughout the Netherlands. As of February 2025, seventy-three property releases have reduced the portfolio to 32 properties and lowered the outstanding loan balance 46.7% to €347.2 million. The capex facility has decreased to €35.9 million. In addition to the €383.1 million total senior loan, there is €58.6 million of outstanding mezzanine debt held outside the trust.

The collateral properties consist of 28 office buildings, two industrial properties, and two car parks. The properties are in five market areas in the Netherlands, the largest being Amsterdam (49.5% of loan balance). They are leased to nearly 320 tenants.

KBRA utilised information obtained from the trustee and the servicer to analyse the remaining loan collateral as of the February 2025 servicer report. The analysis produced a KNCF of €23.0 million and a KBRA value of €320.7 million (€1,371 per sqm). The resulting KLTV is 119.5%, compared to 110.0% at last review and 96.5% at securitisation. The portfolio is 71.6% leased after adjusting for tenants that have given notice of their intention to vacate, down from 73.0% at last review and 84.0% at closing. A Cash Trapping Event has been in effect since the November 2022 reporting period. KBRA identifies the loan as a K-LOC.

Details for classes with rating changes are as follows:

  • Class A to AA- (sf) from AAA (sf) DN
  • Class B to A- (sf) from AA- (sf) DN
  • Class C to BBB- (sf) from A- (sf) DN
  • Class D to B (sf) from BB (sf) DN
  • Class E to B- (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.

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.

Doc ID: 1008688