CHICAGO--(BUSINESS WIRE)--Fitch Ratings upgrades the rating on one class of Beckman Coulter, Inc., series BC 2000-A. The Rating Outlook has been revised to Stable from Positive. A detailed list of rating actions follow at the end of this release.
KEY RATINGS DRIVERS
The upgrade is the result of stable performance at the two collateral properties and creditworthiness of the tenant. The single tenant at both properties, Danaher Corporation, is an investment grade-rated tenant that operates five distinct business segments that specialize in the manufacturing, design, and marketing of products and services focused in the life sciences industry.
RATINGS SENSITIVITY
The Stable Outlook reflects that no future rating actions are anticipated. The lease payments cover the debt service for the life of the transaction and credit enhancement will continue to increase due to loan amortization.
The loans are secured by two single-tenant office/research and development facilities, located in Brea, CA and Miami, FL and comprising a total of approximately 1.1 million square feet. Each property is subject to a triple net lease in which the tenant is obligated to remit rental payments at a rate reflecting an amount equal to the loan's principal and interest payments. The leases expire within one month of the loans' maturity dates of June 30, 2018. Assuming no defaults or prepayments, the confined balance of the loans at maturity is expected to be approximately $53.1 million ($46 per square foot).
The loan remains current on its principal and interest payments. As part of its analysis, Fitch took the current in-place rents and deducted market vacancy factors, market management fees, and assumed capital expenditures and leasing costs in order to derive a normalized operating cash flow for the properties. The resulting stressed debt service coverage ratio, which gives credit for amortization and is based upon Fitch's stressed cash flow and a debt service constant of 9.66%, is 1.55 times (x).
As of the July 2012 distribution date, the pool's aggregate certificate balance has decreased 20% to C$87.7 million from C$109.7 million at issuance. The loans mature Nov. 15, 2018 and have a weighted-average coupon of 7.5%.
Fitch has upgraded the following:
--$92.2 million class A to 'BB' from 'BB-'; Outlook revised to Stable from Positive.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (May 24, 2013);
--'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions' (Sept. 21, 2012).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661
Criteria for Analyzing Large Loans in U.S. Commercial Mortgage
Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=688831
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=794262
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