Rpt fitch upgrades semper finance 2006 1 class d & e; affirms semper finan

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Feb 13 (The following statement was released by the rating agency)Fitch Ratings has upgraded Semper Finance 2006-1 Ltd.'s class D and E note and affirmed the others and affirmed Semper Finance 2007-1 GmbH's class A1+ to E notes. A full list of rating actions is at the end of this release. Semper Finance 2006-1 and 2007-1 are synthetic securitisations of commercial mortgage loans originated by Hypothekenbank Frankfurt AG (A-/Stable/F1), which are secured by German commercial real estate assets. KEY RATING DRIVERS The upgrade of Semper Finance 2006-1's class D notes to 'A'sf and class E notes to 'BBB'sf, reflects the high credit enhancement provided by the junior notes and the moderate LTV profile. The level of market value decline required to erode the protection, would need to be close to 70% (due to the advance rates below 30%), which is significantly above the level of decline expected in 'A'sf and 'BBBsf' rating stress scenarios for German multi-family assets. The affirmation of the remaining Semper Finance 2006-1 and Semper Finance 2007-1 notes is driven by strong collateral performance and increased credit enhancement available to each class through sequential repayment. As a result of amortisation and repayments, Semper Finance 2006-1's reference pool has reduced to EUR408.5m from EUR1.85bn at closing (or 333 loans from 1,773) and Semper Finance 2007-1's pool to EUR250.6m from EUR1.00bn at closing (or 119 loans from 492). Fitch believes that the risk profile of both reference pools has been stable or improved since the last rating action in May 2013. SEMPER FINANCE 2006-1 The main performance indicators have all improved since the last review of the transaction in May 2013, which is in line with expectations. The weighted average (WA) vacancy across the reference pool has decreased to 7.3% from 7.6% (now at the closing date level) and the WA loan-to-value ratio (LTV) has fallen to 41.4% from 45.3% (64.7% at closing). Over the same period, interest coverage has improved to 4.6x from 4.0x (2.7x at closing) mainly driven by interest rate resets and deleveraging. Through prepayments (accounting for 77% of the repayments to date), portfolio quality has not deteriorated, which supports Fitch's view that negative selection during the transaction term is unlikely to occur. Furthermore, there have been no credit events (defined as bankruptcy of the relevant borrower or failure to pay) since the transaction closed in 2006. Although portfolio concentration has increased (ten largest borrowers now make up 59.2% of the outstanding balance, compared with 36.4% at closing) the quality of the loans is homogenous, with vacancy for the top ten borrowers below that of the overall pool (6.7% versus 7.3% as of December 2013). The increase in concentration does not pose an additional risk to the transaction due to decreasing leverage, resulting in a strong increase in credit enhancement and stable performance. SEMPER FINANCE 2007-1 The main performance indicators have improved due to scheduled amortisation. The reported WA LTV has declined slightly to 64% from 66% since May 2013. At the same time, the portfolio's WA debt service coverage ratio has improved slightly to 1.5x from 1.4x. The portfolio's WA vacancy rate has been stable at around 3.7% during the same period (6.9% at closing).

Another sign of stable performance is the decrease in defaulted reference claims to 7.0% from 7.8% by balance in May 2013. This is likely to increase slightly as the portfolio size decreases. Uncertainty on workout outcome and timing for the 22 currently defaulted loans, is the reason for the Negative Outlook on the class E notes. Nevertheless, Fitch believes that the potential losses from defaulted reference claims are largely offset by the protection offered by unrated junior classes (EUR26.9m) and by the significant portfolio amortisation, which increases credit enhancement and mitigates the risk of collateral underperformance. RATING SENSITIVITIES If the number of credit events in either reference pool increased unexpectedly the Outlook on Semper Finance 2006-1's class E and D notes could be revised and Semper Finance 2007-1's class E notes could be downgraded. A downgrade of the notes' collateral, Lettres de Gage Publiques (A/Stable) issued by Hypothekenbank Frankfurt International S. A. (A-/Stable/F1), would cause a downgrade of the notes to the collateral's new rating, if the note collateral was not exchanged in line with the option in the transaction documents. The rating actions are as follows:

Semper Finance 2006-1 Ltd. :Senior Swap, PIFClass A+ (XS0274873941), PIFEUR56.3m Class A (XS0274874246) affirmed at 'Asf'; Outlook StableEUR111.5m Class B (XS0274874592) affirmed at 'Asf'; Outlook StableEUR92.5m Class C (XS0274874832) affirmed at 'Asf'; Outlook StableEUR83.0m Class D (ISIN: XS0274875052) upgraded to 'Asf' from 'BBB+sf'; Outlook Stable

EUR32.7m Class E (ISIN: XS0274875565) upgraded to 'BBBsf' from 'BB+sf'; Outlook StableEUR7.4m Class F (XS0276247748): not ratedEUR25.1m Threshold Amount: not ratedSemper Finance 2007-1 GmbH :EUR0.03m A1+ (XS0305670647) affirmed at 'Asf'; Outlook StableEUR10.0m Class A2 (XS0305670993) affirmed at 'Asf'; Outlook StableEUR51.8m Class B (XS0305671298) affirmed at 'Asf'; Outlook StableEUR51.7m Class C (XS0305671454) affirmed at 'BBBsf'; Outlook StableEUR49.1m Class D (XS0305672262) affirmed at 'BBsf'; Outlook StableEUR20.3m Class E (XS0305672692) affirmed at 'Bsf'; Outlook NegativeEUR8.7m Class F (XS0305672858): not ratedEUR11.4m Class G (XS0305673070): not ratedEUR6.8m Threshold Amount: not rated var $relatedItems = $('lia "/article/usa-moneymarkets-idUSN9N1D9060"U.S. LIBOR breaches 1 pct for first time since 2009/a/lilia "/article/norway-housing-idUSL5N1EU1V8"UPDATE 1-Norway\'s housing inflation at nine-year high in December/a/li'), $relatedItems = $relatedItems.slice(0,10), relatedBlockLimit = Number('6'), relatedItemsTotal = $relatedItems.length, $paragraphTags = $('#article-text p'), contentParagraphs = 0, minParagraphs = Number("8"); for (i=0; i $paragraphTags.length; i++) { if ($paragraphTags[i].innerText.trim().length 0) { contentParagraphs = contentParagraphs + 1; } } if (contentParagraphs minParagraphs) { setTimeout(function(){ if (relatedItemsTotal relatedBlockLimit) { $('.first-article-divide').append('div class="related-content group-one"h3 class="related-content-title"Also In Financials/h3ul/ul/div'); $('.second-article-divide').append($('.slider.slider-module')); $('.third-article-divide').append('div class="related-content group-two"h3 class="related-content-title"Also In Financials/h3ul/ul/div'); var median = (relatedItemsTotal / 2); var $relatedContentGroupOne = $('.related-content.group-one ul'); var $relatedContentGroupTwo = $('.related-content.group-two ul'); $.each($relatedItems, function(k,v) { if (k + 1 = median) { $relatedContentGroupOne.append($relatedItems[k]); } else { $relatedContentGroupTwo.append($relatedItems[k]); } }); } else { $('.third-article-divide').append($('div class="related-content group-one"h3 class="related-content-title"Also In Financials/h3ul/ul/div')); $('.related-content ul').append($relatedItems); } },500); } Next In Financials BRIEF-Sesac says it will be acquired by Blackstone * Sesac says it will be acquired by blackstone; financial terms of transaction were not disclosed Source text for Eikon: Further company coverage: Saudi's Riyad Bank recommends lower cash dividend for H2 2016 DUBAI, Jan 4 The board of Riyad Bank has proposed paying a cash dividend of 0.30 riyals ($0.08) per share for the second half of 2016, Saudi Arabia's fourth-largest lender by assets said on Wednesday. BRIEF-CME Group reached record average daily volume of 15.6 mln contracts in 2016 * Cme group reached record average daily volume of 15.6 million contracts in 2016, up 12 percent from 2015 MORE FROM REUTERS window._taboola = window._taboola || []; _taboola.push({ mode: 'organic-thumbnails-a', container: 'taboola-recirc', placement: 'Below Article Thumbnails - Organic', target_type: 'mix' }); Sponsored Content @media(max-this site) { #mod-bizdev-dianomi{ height: 320px; } } From Around the Web Promoted by Taboola window._taboola = window._taboola || []; _taboola.push( { mode: 'thumbnails-3X2', container: 'taboola-below-article-thumbnails', placement: 'Below Article Thumbnails', target_type: 'mix' } ); window._taboola = window._taboola || []; _taboola.push