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KBRA Assigns Preliminary Ratings to Scorpio (European Loan Conduit No. 34) DAC
[May 15, 2019]

KBRA Assigns Preliminary Ratings to Scorpio (European Loan Conduit No. 34) DAC

Kroll Bond Rating Agency Europe Limited (KBRA) is pleased to announce the assignment of preliminary ratings to seven classes of Scorpio (European Loan Conduit No. 34) DAC, a CMBS single-borrower securitisation.

The collateral for the transaction is a £236.4 million pari passu portion of a £286.4 million limited recourse, first lien mortgage loan. The floating rate loan has a two-year initial term with three extension options (two one-year options plus an 18-month option). The loan is secured by the borrower's interests in 112 assets, most of which are 'last mile' industrial warehouse properties. The largest asset is 6.5% by ALA, while the 10 largest assets are just over one-third (36.5%) of the pool. The properties are leased to approximately 850 individual tenants, of which the largest represents only 2.6% of passing rent and the top 10 represent 12.1%. Most tenants are local or regional firms based in the UK.

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 £23.7 million, individual property capitalisation rates ranging from 6.00% to 13.50%, a KBRA Value of £319.5 million, and a KBRA Loan to Value (KLTV) of 89.6%. In our analysis of the transaction, we also reviewed and considered third-party technical due diligence, environmental, and valuation reports; the results of our site inspections; and legal documentation.

To access the full report, click here.


Further disclosures relating to this rating action ar available in the EU Information Disclosure Form. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at

To access ratings, reports and disclosures, click here.

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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.

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