LONDON (S&P Global Ratings) Dec. 21, 2023--S&P Global Ratings said today that Canary Wharf Finance II PLC's proposal to release 10 Cabot Square from its mortgage pool and to partially repay the class A1 and A3 notes will not affect any of the ratings in the transaction.
The proposed release of the 10 Cabot Square asset from the mortgage pool under the securitization and the partial repayment of the class A1 and A3 notes on the January 2023 interest payment date (IPD) will decrease the total note balance by £263,500,000 to £1,055,380,420 (excluding the cash reserve, after the January IPD). With the removal of the asset and the partial paydown of the A1 and A3 notes, the reported loan-to-value ratio will decrease to 46.6% from 48.4% (after the January IPD).
Canary Wharf Finance II is a true sale European CMBS transaction that closed in June 2000, followed by various tap issuances and restructurings, with the latest in April 2007. The transaction comprises a single loan, currently secured on six office properties (initially seven) that form part of the Canary Wharf Estate, with a current securitized balance of £1,326.2 million as of the October 2023 IPD.
We have provided a rating agency confirmation for the proposed release of 10 Cabot Square from the mortgage pool under the Canary Wharf Finance II securitization. As such, our current ratings on all classes of notes are unchanged and continue to reflect our evaluation of the underlying real estate collateral.
This report does not constitute a rating action.
| Primary Credit Analyst: | Carla N Powell, London + 44 20 7176 3982; carla.powell@spglobal.com |
| Secondary Contact: | Mathias Herzog, Frankfurt + 49 693 399 9112; mathias.herzog@spglobal.com |
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