KBRA Affirms One Rating and Upgrades Remaining Ratings of Taurus 2021-4 UK DAC
20 May 2025 | London
KBRA UK (KBRA) affirms the rating of the Class C notes and upgrades the ratings of Classes D, E and F notes of Taurus 2021-4 UK DAC, a CMBS transaction. The rating actions follow a surveillance review of the transaction, which exhibited an improvement in contracted rents signed on new leases and market rents across the portfolio, resulting in an increase in KNCF and KDY since the last review of this transaction. However, the total contracted rent for the portfolio decreased slightly by 1.5% since the last review, owing to an increase in vacancy from 2.7% to 6.9%, mainly driven by two fully vacant properties. However, the underlying performance of the rest of the portfolio continues to remain strong.
At closing, the transaction consisted of two non-crossed, limited recourse, first-lien mortgage loans: Fulham and United VI. The £633.2 million Fulham Loan was secured by the borrowers’ freehold (249 properties) and leasehold (26) interests in 257 industrial assets, 16 parcels of land, and two office assets located in the United Kingdom (UK). The loan was repaid in full and the related proceeds were applied against the outstanding notes’ balance at the February 2024 NPD, resulting in the pay-off in full of the Class A and B notes. The remaining £210.9 million United VI Loan is secured by the borrowers' freehold (37), leasehold (10), and combination of freehold and leasehold (two) interests in 49 industrial assets located in the UK. There have been no property sales since closing and the United VI Loan balance remains at £210.9 million as of the current review.
KBRA analysed the cash flow for the properties utilising information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of £16.8 million (£15.4 million at the last review) and KBRA value of £258.3 million, or £88 per sf (£237.8 million, £81 per sf at the last review). The resulting in-trust KLTV is 81.6% compared to 88.7% at the last review and 97.8% at securitisation. KBRA maintains a KPO of Perform on the loan.
Details concerning the classes with ratings changes are as follows:
- Class D to A (sf) from BBB+ (sf)
- Class E to BBB (sf) from BB+ (sf)
- Class F to BB (sf) from B+ (sf)
To access ratings and relevant documents, click here.
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