Pembroke Property Finance 3 DAC CMBS Notes Assigned Preliminary Ratings
| Preliminary ratings | ||||||
|---|---|---|---|---|---|---|
| Class | Preliminary rating* | Preliminary amount (mil. €) | ||||
| A | AAA (sf) | 210.0§ | ||||
| B | AA (sf) | 34.5 | ||||
| C | AA- (sf) | 20.0 | ||||
| D | A (sf) | 22.6 | ||||
| E | BBB- (sf) | 23.0 | ||||
| F | B (sf) | 20.6 | ||||
| Z | NR | 18.9 | ||||
| *Our ratings address timely payment of interest and payment of principal not later than the legal final maturity. §Includes amounts to fund the issuer liquidity reserve. NR--Not rated. | ||||||
Overview
- We have assigned preliminary ratings to Pembroke Property Finance 3 DAC's class A, B, C, D, E, and F notes.
- In this true sale transaction, the issuer will use the issuance amount to purchase a portfolio of 110 commercial mortgage loans and to fund a committed reserve account.
FRANKFURT (S&P Global Ratings) Jan. 17, 2025--S&P Global Ratings has assigned its preliminary credit ratings to Pembroke Property Finance 3 DAC's class A, B, C, D, E, and F notes. At closing, Pembroke Property Finance 3 will also issue unrated class Z notes.
In this true sale transaction, the issuer will use the issuance amount to purchase a portfolio of 110 commercial mortgage loans and to fund a committed reserve account.
The portfolio comprises 110 small commercial real estate loans originated by Finance Ireland Credit Solutions DAC and Finance Ireland Property Finance DAC (FICS and FIPF; the sellers) and secured on commercial properties located throughout Ireland.
This is the third Pembroke transaction following Pembroke Property Finance DAC in 2019 and Pembroke Property Finance 2 DAC in 2022. About 14.9% of the pool in Pembroke Property Finance 2 currently forms part of the collateral for Pembroke Property Finance 3 and is also included in this new securitization.
Our preliminary ratings address Pembroke Property Finance 3's ability to meet timely interest payments and principal repayment no later than the legal final maturity on the class A notes--in June 2043--and the ultimate payment of interest and principal no later than the legal final maturity on the other rated notes, in June 2043. The issuer will pay interest according to the priority of payments. Under the transaction documents, interest payments on all classes of notes (excluding the class A notes) can be deferred even when a class of notes becomes the most senior outstanding without constituting an event of default. Any deferred interest will also accrue interest at the applicable rate due under that class of notes.
Our preliminary ratings on the notes reflect the credit support provided by the subordinate classes of notes, the issuer reserve, the underlying loans' credit, cash flow, legal characteristics, and an analysis of the transaction's counterparty and operational risks, namely the ability of the servicer, FICS, to perform its roles in this transaction.
Related Criteria
- Criteria | Structured Finance | CMBS: CMBS Global Property Evaluation Methodology, July 26, 2024
- Criteria | Structured Finance | CMBS: European CMBS Methodology And Assumptions, July 26, 2024
- General Criteria: Environmental, Social, And Governance Principles In Credit Ratings, Oct. 10, 2021
- Criteria | Structured Finance | General: Global Framework For Payment Structure And Cash Flow Analysis Of Structured Finance Securities, Dec. 22, 2020
- Criteria | Structured Finance | General: Methodology To Derive Stressed Interest Rates In Structured Finance, Oct. 18, 2019
- Criteria | Structured Finance | General: Counterparty Risk Framework: Methodology And Assumptions, March 8, 2019
- Criteria | Structured Finance | General: Incorporating Sovereign Risk In Rating Structured Finance Securities: Methodology And Assumptions, Jan. 30, 2019
- Legal Criteria: Structured Finance: Asset Isolation And Special-Purpose Entity Methodology, March 29, 2017
- Criteria | Structured Finance | General: Global Framework For Assessing Operational Risk In Structured Finance Transactions, Oct. 9, 2014
- General Criteria: Global Investment Criteria For Temporary Investments In Transaction Accounts, May 31, 2012
- General Criteria: Principles Of Credit Ratings, Feb. 16, 2011
- Criteria | Structured Finance | General: Methodology For Servicer Risk Assessment, May 28, 2009
- Criteria | Structured Finance | CMBS: Methodology For Analyzing Loan-Level Limited Purpose Entities In European CMBS, Sept. 1, 2004
Related Research
- S&P Global Ratings Definitions, Dec. 2, 2024
- European CMBS Monitor Q3 2024, Oct. 24, 2024
- ESG Industry Report Card: Commercial Mortgage-Backed Securities, March 31, 2021
- 2017 EMEA CMBS Scenario And Sensitivity Analysis, July 6, 2017
- Global Structured Finance Scenario And Sensitivity Analysis 2016: The Effects Of The Top Five Macroeconomic Factors, Dec. 16, 2016
- European Structured Finance Scenario And Sensitivity Analysis 2016: The Effects Of The Top Five Macroeconomic Factors, Dec. 16, 2016
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'sf' Identifier
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| Primary Credit Analyst: | Yilin Li, Frankfurt + 49 (69) 33999 107; yilin.li@spglobal.com |
| Secondary Contact: | Mathias Herzog, Frankfurt + 49 693 399 9112; mathias.herzog@spglobal.com |
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