DBRS Assigns New Rating to the Notes Issued by Debussy DTC plc

DBRS Ratings Limited (DBRS) has today issued a final rating on the following class of Commercial Real Estate Loan Backed Fixed-Rates Notes due in July 2025 issued by Debussy DTC plc:

-- BBB (low) (sf) to the Class A Notes

The trend is Stable.

Debussy DTC PLC (the Issuer) is a securitisation of one fixed-rate loan split into three tranches with a combined balance of £263,159,000. As there is just one loan with a common security package, all three loan tranches are cross-collateralised and cross-defaulted with each other. The loan has been made to one borrower, Toys “R” Us Properties UK Limited (the Borrower), which is a wholly owned subsidiary of Toys “R” Us Holdings Limited. The Sponsor and ultimate parent of the Borrower is Toys “R” Us, Inc. (the Sponsor; Toys “R” Us). Toys “R” Us is one of the largest toy retailers in the world and operates 80 ‘mega stores’ throughout the United Kingdom. The transaction is arranged by Cairn Capital Limited for the benefit of the Sponsor, with the purpose of providing capital to refinance a loan that was securitised in a previous commercial mortgage-backed securities (CMBS) transaction, Vanwall Finance plc.

The collateral portfolio for the transaction consists of thirty of Toys “R” Us’s eighty mega stores and one distribution centre. The combined area of these properties is 1,872,409 square feet. One property is located in each of Northern Ireland, Scotland and Wales and the remaining twenty-eight are in England. All of the properties are let to and occupied by Toys “R” Us Limited, which is the main operating company of the Toys “R” Us business in the United Kingdom. Toys “R” Us Limited is a wholly owned subsidiary of Toys “R” Us Holdings Limited, which has Toys “R” Us, Inc. as its ultimate parent company. For more information on the company structure and security structure, see the Borrower Structure diagram in the associated DBRS report.

The Issuer has issued three classes of notes, Class A, Class B and Class C. DBRS has been asked to provide a rating for the Class A Notes only.

TRU (UK) Noteholder Limited, a wholly owned subsidiary of Toys “R” Us Inc., pursuant to requirements of Article 122A of the Capital Requirements Directive, will be retaining, on an ongoing basis, a net economic interest in the securitisation of not less than 5%. The expected final maturity date for the Debussy DTC PLC securitisation is July 2020. The rated final maturity is July 2025.

Notes:
All figures are in pound sterling unless otherwise noted.

The principal methodology applicable is European CMBS Rating Methodology, which can be found on www.dbrs.com under Methodologies.

The sources of information used for this rating include Cairn Capital Limited, Toys “R” Us Properties (UK) Limited, Toys “R” Us Limited, Toys “R” Us Inc. and CBRE. DBRS considers the information available to it for the purposes of providing this rating was of satisfactory quality.

This rating concerns a newly issued financial instrument. This is the first DBRS rating on this financial instrument.

For additional information on this rating, please see the linking document or European Disclosure Requirements.

The individual linking document for this transaction is located at

For further information on DBRS’s historic default rates published by the European Securities and Markets Administration (ESMA) in a central repository see http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml.

Ratings assigned by DBRS Ratings Limited are subject to EU regulations only.

Initial Lead Analyst: Scott Goedken
Initial Rating Date: 19 July 2013
Committee Date: 2013-07-19 at 14:00 EST
Issuer Notified Date: 2013-07-19 at 18:05 EST
Rating Committee Chair: Mary Jane Potthoff

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