DBRS Confirms CPUK Mortgage Finance Limited

DBRS has today confirmed the ratings of CPUK Mortgage Finance Limited (CPUK) as listed in the below table.

This transaction originally consisted of a 5-year, interest-only loan, that was secured by the long leasehold interests in four Centre Parcs holiday villages located throughout the United Kingdom. The original securitised loan amount was £750 million, with a non-securitised subordinate B-note in the amount of £282 million.

In April 2010, the loan’s maturity date was extended two years, from October 2011 to October 2013 and the margin on each tranche was increased. Historically the loan has performed well and the Centre Parcs business has been stable. According to the October 2011 servicer report, the total EBITDAR (inclusive of all four properties) for the past four quarters represents a 38% increase over the reported EBITDAR at issuance.

As required by the documents, excess cash flow will be used to reduce the loan principal balance on the October 2011, October 2012 and October 2013 interest payment dates. As such, a £3,678,000 was paid to the CPUK whole loan in October 2011.

DBRS continues to monitor this transaction on a quarterly basis and the full surveillance report with collateral level, bond level and analytical detail, will be published in the near term.

Note:
All figures are in Pounds unless otherwise noted.

The applicable methodologies are European CMBS Methodology, CMBS European Surveillance Methodology, Legal Criteria for European Structured Finance Transactions, Unified Interest Rate Model and Swap Criteria for European Structured Finance Transactions.