September 26, 2012 / 7:46 PM / 7 years ago

TEXT-Fitch assigns Florentia Limited final ratings

Sept 26 - Fitch Ratings has assigned Florentia Limited final ratings, as

EUR392m class A due October 2024 (XS0832456627): 'AAAsf'; Outlook Stable
EUR121m class B due October 2024 (XS0832457278): 'AAsf'; Outlook Stable
EUR141m class C due October 2024 (XS0832457864): 'Asf'; Outlook Stable
EUR50m class D due October 2024 (XS0832458086): 'BBBsf'; Outlook Stable
EUR50m class E due October 2024 (XS0832458599): 'BBB-sf'; Outlook Stable

The final ratings are based on Fitch's assessment of the underlying collateral,
available credit enhancement and the transaction's sound legal structure.

The transaction is a securitisation arranged for the refinancing of senior loans
previously originated for the acquisition of a portfolio of German multifamily
housing assets managed by Vitus Immobilien S.a.r.l (Vitus; not rated) and
securitised in the Centaurus (Eclipse 2005-3) plc transaction in 2005. An escrow
agreement will regulate the process of the refinancing; prior to the refinancing
date on 28 September 2012, funds from the note issuance will be held in a
refinancing account at Deutsche Bank AG ('A+'/Stable/'F1+').

The issuer will apply the issuance proceeds to advance the loans to German
limited partnerships and limited liability companies acting as borrowers.

The collateral is concentrated in 10 cities in West Germany (predominantly
Bremen, Kiel and Monchengladbach) and is considered comparable with that owned
by other large multifamily housing companies in Germany. The cash flows
generated by the portfolio have been relatively stable over time, with occupancy
levels improving in recent years after a slight deterioration, mainly due to
modernisation and capital expenditure programmes undertaken in 2007-2010. As a
result, the vacancy rate has decreased and the portfolio has now stabilised
around an occupancy ratio of 95%.

The securitised loan benefits from a moderate reported loan-to-value ratio (LTV)
of 64% (including the continuing debt), as well as a strong debt service
coverage ratio of 1.62x and scheduled amortisation, which will reduce the LTV to
60% at scheduled maturity in 2017. Fitch estimates the LTV to be higher, based
on a 6% net equivalent yield and slightly more conservative assumptions on
stressed cost and vacancy assumptions.

Post refinancing, an aggregate amount of c.EUR207m of the borrowers' senior
ranking indebtedness will remain outstanding (the continuing debt). Payments due
on the continuing debt will rank ahead of those of the A1 senior loans. In
addition to the continuing debt, there are a number of further facilities
subordinated via an intercreditor agreement. These comprise the A1 junior loans,
the A2 loan and mezzanine loans; although, only the A1 senior loans and
continuing debt are secured by first-ranking land charges over the assets.

Deutsche Bank AG, London Branch will perform the roles of liquidity facility
provider, hedge provider and issuer account bank. Whilst a sudden deterioration
in Deutsche Bank's ratings could negatively affect the notes' ratings, the
triggers set in the transaction documents are in line with Fitch's counterparty
criteria (see 'Counterparty Criteria for Structured Finance Transactions', dated
May 2012 available at

Fitch's stress and rating sensitivity analysis will be detailed in the final
transaction report which will be available at

Additional information is available at The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings

In addition to the source(s) of information identified in the 'EMEA CMBS Rating
Criteria', this action was additionally informed by information provided by the
sponsor Vitus Immobilien S. r.l and the arranger Deutsche Bank AG.

Applicable criteria, 'EMEA CMBS Rating Criteria', dated 4 April 2012, and
'Global Structured Finance Rating Criteria', dated 6 June 2012 are available at

Applicable Criteria and Related Research:
EMEA CMBS Rating Criteria
Global Structured Finance Rating Criteria
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