Recipient email addresses will not be used in mailing lists or redistributed.
Use semicolon to separate each address, limit to 20 addresses.
characters you see
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
Don't want to see this again?
Accept our to continue to Moodys.com:
AND SCROLL DOWN!
By clicking “I AGREE” [at the end of this document],
you indicate that you understand and intend these terms and conditions to be
the legal equivalent of a signed, written contract and equally binding, and
that you accept such terms and conditions as a condition of viewing any and all
Moody’s information that becomes accessible to you [after clicking “I AGREE”] (the
“Information”). References herein to “Moody’s” include Moody’s
Corporation, Inc. and each of its subsidiaries and affiliates.
Terms of One-Time Website Use
you have entered into an express written contract with Moody’s to the contrary,
you agree that you have no right to use the Information in a commercial or
public setting and no right to copy it, save it, print it, sell it, or publish
or distribute any portion of it in any form.
acknowledge and agree that Moody’s credit ratings: (i) are current opinions of
the future relative creditworthiness of securities and address no other risk; and
(ii) are not statements of current
or historical fact or recommendations to purchase, hold or sell particular
securities. Moody’s credit ratings and
publications are not intended for retail investors, and it would be reckless
and inappropriate for retail investors to use Moody’s credit ratings and
publications when making an investment decision. No
warranty, express or implied, as the accuracy, timeliness, completeness,
merchantability or fitness for any particular purpose of any Moody’s credit
rating is given or made by Moody’s in any form whatsoever.
3. To the extent permitted by law, Moody’s and its directors,
officers, employees, representatives, licensors and suppliers disclaim
liability for: (i) any indirect, special, consequential, or incidental losses
or damages whatsoever arising from or in connection with use of the
Information; and (ii) any direct or compensatory damages caused to any person
or entity, including but not limited to by any negligence (but excluding fraud
or any other type of liability that by law cannot be excluded) on the part of
Moody’s or any of its directors, officers, employees, agents, representatives,
licensors or suppliers, arising from or in connection with use of the
4. You agree to read [and
be bound by] the more detailed disclosures regarding Moody’s ratings and the
limitations of Moody’s liability included in the Information.
5. You agree that any disputes relating to this agreement or your use of
the Information, whether sounding in contract, tort, statute or otherwise,
shall be governed by the laws of the State of New York and shall be subject to
the exclusive jurisdiction of the courts of the State of New York located in
the City and County of New York, Borough of Manhattan.
06 Aug 2010
Approximately EUR 41 million of Italian CMBS affected.
London, 06 August 2010 -- Moody's Investors Service has today downgraded the following class of
Notes issued by TAURUS CMBS No.2 S.r.l. (amounts
reflect initial outstandings):
EUR16.5M F Notes, Downgraded to Ba3 (sf); previously
on Apr 30, 2010 Baa3 (sf) Placed Under Review for Possible Downgrade
At the same time Moody's has confirmed the following class of Notes
(amounts reflect initial outstandings):
EUR24.7M E Notes, Confirmed at Baa1 (sf); previously
on Apr 30, 2010 Baa1 (sf) Placed Under Review for Possible Downgrade
Moody's has also affirmed the ratings of Class A, Class B,
Class C and Class D Notes. Moody's did not assign a rating
to the Class G Notes of TAURUS CMBS No.2 S.r.l.
EUR239M A Notes, Affirmed at Aaa (sf); previously on Dec 15,
2005 Assigned Aaa (sf)
EUR45.3M B Notes, Affirmed at Aa2 (sf); previously on
Dec 15, 2005 Assigned Aa2 (sf)
EUR24.8M C Notes, Affirmed at Aa3 (sf); previously on
Dec 15, 2005 Assigned Aa3 (sf)
EUR 29M D Notes, Affirmed at A2 (sf); previously on Dec 15,
2005 Assigned A2 (sf)
(1) Transaction Overview
TAURUS CMBS No.2 S.r.l. closed in December
2005 and represents the securitisation of initially four commercial mortgage
loans originated by Merrill Lynch Capital Markets Bank Limited.
At closing, the loans were secured directly or indirectly by first-ranking
legal mortgages over 83 commercial properties located in Italy.
The properties were predominantly office (66.3%) followed
by industrial buildings (28.0%). Since closing,
three (60% of initial pool balance) out of the original four loans
prepaid. In addition, there have been partial prepayments
on the remaining loan (Bernice Loan) in the pool due to property disposals.
On the last interest payment date (IPD) in July 2010, the Bernice
Loan remained in the pool, secured over 41 properties, which
are predominantly office (86.3%) and industrial buildings(14.4%).
The Bernice Loan agreement provides for a step-up in margin payable
starting July 2012. The aggregate outstanding balance was EUR 109.8
million including EUR 10.7 million of undrawn capex facility.
The issuer has invested an amount equal to the undrawn capex facility
in a GIC account. The currently reported Loan-to-Value
(LTV) ratio based on the underwriter (UW) market value is 53.2%
and interest cover ratio is 1.7x. All principal payments
under the Bernice Loan are allocated fully sequential to the notes.
Following the property disposals and subsequent loan prepayments,
the interest received under the Bernice Loan and the GIC account is below
the current weighted average cost of capital of the notes. Therefore,
the available funds cap (AFC) of the unrated Class G Notes has been triggered
since the October 2007 IPD. In addition to the scheduled interest
amounts, the issuer pays a default interest of 1% on any
deferred interest amounts on Class A to Class F.
In April 2010, Moody's placed the Class F and Class E on review
for possible downgrade. The review action was prompted by a partial
shortfall and subsequent deferral of interest of EUR 7,140 on the
Class F Notes on the April 2010 IPD and concerns about potential future
interest shortfalls on the Class F as well as the Class E Notes.
(2) Rating Rationale
Today's rating action follows a detailed re-assessment of
the loan and property portfolio's credit risks and analyses on the
likelihood of scheduled interest payments on the Notes.
The current rating of the Class F Notes is driven by the expected income
shortfalls and potential repayment of deferred interest taking into account
(i) future prepayment scenarios based on the borrower's disposal strategy,
(ii) income from the GIC account, and (iii) the volatility and timing
of issuer level senior costs.
Moody's has analysed different disposal and interest rate scenarios,
in which the recovery rate for Class F Notes ranges between 96%
and 100%, however, there are many uncertainties driving
the final recovery rate, inter alia, the extent of senior
costs, movement of Euribor rates and further property disposals.
The final recovery rate may, however, differ from this range.
Although the interest payments on the Class F Notes are uncertain,
Moody's currently expects the payment of all interest amounts by
the legal final maturity date of the notes as well as the full principal
The Class E Notes face also a limited risk of interest shortfalls.
Interest payments are mainly dependent on (i) further prepayments on the
Bernice Loan and (ii) a further increase in senior costs. Moody's
notes that the senior costs in the transaction have been historically
very volatile, making it difficult to estimate the future senior
ranking costs. However, to suffer interest shortfall,
the senior ranking costs would have to be higher than its historical peak.
Therefore, Moody's considers the probability for Class E Notes
to suffer an interest shortfall to be low, and the rating of the
Class E is driven by the Note-to-Value (NTV) ratio for this
Currently, the Class A, Class B, Class C, Class
D enjoy relatively low Note to Value (NTV) ratios ranging from 10%
to 47%. Moody's notes that further disposals will
benefit the senior classes of notes due to the sequential allocation of
(3) Moody's Analysis
Property Value: Moody's estimates that the LTV of the Loan
is 72%. The LTV is based on Moody's value of EUR 457
million reflecting 7.0% cap rate for the remaining property
pool. Moody's value compares to an UW value of EUR 572 million
as of March 2010.
Refinancing Risk: The Bernice Loan matures in July 2015.
The borrower intends to sell the whole portfolio over the loan term.
Up to July 2012, the loan is only amortised by prepayments following
property disposals and thereafter the borrower will amortise the loan
in seven half yearly instalments. In the analysis, Moody's
has given only limited benefit to the scheduled amortisation and believes
that the refinancing risk of this loan has increased compared to its assessment
at closing. This adjustment of the refinancing risk assessment
is primarily due to the decline in property values and its expectations
that commercial real estate lending markets will only slowly recover from
Term Default Risk: Moody's assessment of the default probability
during the term is linked to the expected DSCR levels, assuming
Euribor increases to the capped level of 4.2% and considering
the lease expiry profile. Due to good coverage levels and a back
loaded lease expiry profile, Moody's assesses the term default risk
of the Bernice Loan to be low.
Overall Default risk: Despite the increased refinancing risk,
the overall default risk of the Loan is low.
Portfolio Loss Exposure: Taking into account the increased refinancing
risk and property value decline, Moody's considers the overall loss
exposure of the transaction to be low.
Concentration Risk. The portfolio securitised in this transaction
exhibits an above average concentration in terms of property types (86.3%
office) and property location (100% Italy).
(4) Rating Methodology
The principal methodologies used in rating and monitoring the transaction
were "Update on Moody's Real Estate Analysis for CMBS Transaction in EMEA"
June 2005 and "Moody's Updates on its Surveillance Approach for EMEA CMBS"
March 2009, which can be found at www.moodys.com in
the Rating Methodologies sub-directory under the Research &
Ratings tab. Other methodologies and factors that may have been
considered in the process of rating this issuer can also be found in the
Rating Methodologies sub-directory on Moody's website. The
last Performance Overview for this transaction was published on 10 May
Further information on Moody's analysis of this transaction is available
on www.moodys.com. In addition, Moody's publishes
a weekly summary of structured finance credit, ratings and methodologies,
available to all registered users of our website, at www.moodys.com/SFQuickCheck.
For updated monitoring information, please contact email@example.com.
To obtain a copy of Moody's New Issue Report on this transaction,
please visit Moody's website at www.moodys.com or contact
our Client Service Desk in London (+44-20-7772 5454).
Frankfurt am Main
MD - EMEA Structured Fin
Structured Finance Group
Moody's Deutschland GmbH
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Structured Finance Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Moody's Investors Service Ltd.
Moody's downgrades the Class F Notes and confirms the Class E Notes issued by TAURUS CMBS No.2 S.r.l.
One Canada Square
London E14 5FA
No Related Data.
© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.
CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.
MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.
ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.
CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.
All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.
NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.
Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com
under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”
Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.
Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.
MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.
MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.