KBRA Assigns Preliminary Ratings to EOS (European Loan Conduit No.35) DAC

DUBLIN–(BUSINESS WIRE)–Kroll Bond Rating Agency Europe Limited (KBRA) is pleased to announce
the assignment of preliminary ratings to five classes of EOS (European
Loan Conduit No.35) DAC, a CMBS single-borrower securitisation.

The collateral for the transaction is a €291.0 million pari passu
portion of a €416.0 million limited recourse, first lien mortgage loan.
The floating rate loan has a three-year initial term with two, one-year
extension options. The loan is secured by the borrower’s interests in
165 office (65), industrial (50), and retail (50) assets. Together, the
properties comprise 921,297 sqm and are located across three countries:
the Netherlands (62.7% of loan balance), Germany (25.6%), and Finland
(11.7%). The largest asset is 4.8% by ALA, while the 10 largest assets
are approximately one-quarter (24.6%) of the pool. The properties are
leased to approximately 570 individual tenants, the largest of which
represents 5.0% of total gross rent and the top 10 represent 18.2%.

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 €39.5 million, individual capitalisation
rates ranging from 6.00% to 17.75%, a KBRA Value of €478.6 million, and
a KBRA Loan to Value (KLTV) of 86.9%. 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.

Disclosures

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

To access ratings, reports and disclosures, click here.

Related Publications: (available at www.kbra.com)

• EOS
  (European Loan Conduit No.35) DAC Pre-Sale Report
• European
  CMBS Rating Methodology

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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.

Contacts

Analytical Contacts:

Matthew Horner, Director, CMBS (Lead Analyst)
Dublin
+353 1
588 1240
mhorner@kbra.com

Patrick McQuinn, Director, CMBS
New York
+1 (646) 731-2445
pmcquinn@kbra.com

Yee Cent Wong, Senior Managing Director, CMBS
New York
+1
(646) 731-2374
ywong@kbra.com

Eric Thompson, Senior Managing Director, Real Estate Finance Group
(Rating Committee Chair)
New York
+1 (646) 731-2355
ethompson@kbra.com