DBRS Assigns Provisional Ratings to Moda 2014 S.r.l.

DBRS has today assigned provisional ratings to the following classes of Commercial Mortgage-Backed Floating-Rate Notes Due August 2026 (collectively, the Notes) to be issued by Moda 2014 S.r.l. (the Issuer):

-- Class A at A (high) (sf)
-- Class B at A (sf)
-- Class C at BBB (sf)
-- Class D at BBB (sf)
-- Class E at BB (sf)

All trends are Stable.

Moda 2014 S.r.l is a securitisation of two floating-rate loans made by Goldman Sachs International Bank to the borrowers and managed by Blackstone Real Estate Partners. The two loans, Franciacorta and Vanguard, have an aggregate securitized balance of €198,222,000, and are hedged with borrower level interest rate caps. The borrower under the Franciacorta Loan is Franciacorta Retail S.r.l. and the borrowers under the Vanguard Loan are Carpi Retail S.r.l, Brindisi Retail S.r.l., Valdichiana Retail S.r.l, Valdichiana Propco S.r.l and La Scaglia S.r.l. The sponsors for the loans are funds managed by Blackstone Real Estate Partners.

The purpose of the Franciacorta loan is to provide refinancing of existing indebtedness of the Franciacorta borrower. The collateral securing this loan consists of a single outlet shopping village located in Brescia, Italy. The property contains 152 retail units as well as restaurants and other ancillary services within 32,657 square metres of leasable area. The property was 99.4% occupied as of 22 April 2014.

The purpose of the Vanguard loan is to provide financing for the acquisition of the Valdichiana asset and also to refinance existing indebtedness of the Vanguard borrowers. The collateral securing this loan consists of one outlet shopping village and three shopping centres located throughout Italy. By value, 71.59% of the collateral lies in Northern Italy and 28.41% lies in Southern Italy. Combined, these properties comprise 69,539 square metres of leasable area and contain 251 retail units as well as a number of restaurants and other ancillary services. The weighted-average occupancy for the properties as of 31 March 2014 was 93.8%.

The final legal maturity of the Notes is in August 2026, seven years beyond the maturity of the loans. If necessary, this is believed to be sufficient time, given the security structure and jurisdiction of the underlying loans, to enforce on the loan collateral and repay bondholders.

The ratings assigned by DBRS to the Notes are based exclusively on the credit provided by the transaction structure and underlying trust assets. All classes will be subject to ongoing surveillance, which could result in upgrades or downgrades by DBRS after the date of issuance.

Notes:
All figures are in Euros unless otherwise noted.

The principal methodology applicable are European CMBS Rating Methodology, Legal Criteria for European Structured Finance Transactions, Operational Risk Assessment for European Structured Finance Servicers, Derivative Criteria for European Structured Finance Transactions and Unified Interest Rate Model for European Securitisations, which can be found on www.dbrs.com.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The full report providing additional analytical detail is available by clicking on the link under Related Research at the right of the screen or by contacting us at info@dbrs.com.

Lead Analyst: Elizabeth Lovett