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KBRA Assigns Preliminary Ratings to Highways 2021 PLC
[November 23, 2021]

KBRA Assigns Preliminary Ratings to Highways 2021 PLC

Kroll Bond Rating Agency UK Limited (KBRA) is pleased to announce the assignment of preliminary ratings to five classes of Highways 2021 PLC, a CMBS single-borrower securitisation.

The collateral for the transaction consists of £264.5 million limited recourse, first lien mortgage loan. The floating rate loan has a two-year initial term with three, one-year extension options. The loan is secured by the borrower's freehold interests in eight motorway service areas (MSA's) located throughout the United Kingdom (UK). The properties are leased to Welcome Break on leases that expire in December 2045.

KBRA's analysis of the transaction included a detailed evaluation of the properties' cash flows and the application of our European CMBS Rating Methodology. The results of our analysis yielded a KBRA net cash Flow (KNCF) of £18.5 million, individual property capitalisation rates of 6.5%, a KBRA Value of £284.5 million, and a KBRA Loan to Value (KLTV) of 93.0%. In our analysis of the transaction, we also reviewed and considered third party technical due diligence, environmental, and valuation reports; and legal documentation.

Click here to view the report. To access ratings and relevant documents, click here.

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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.

This credit rating is endorsed by Kroll Bond Rating Agency Europe Limited for use in the European Union. Information on a credit rating's endorsement status is available on its rating page at

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


Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency 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 pursuant to the Temporary Registration Regime. 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. Kroll Bond Rating Agency UK is located at Augustine House, Austin Friars, London, EC2N 2HA, United Kingdom.

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