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Fitch Affirms Beckman Coulter Net Lease Pass-through Certificates BC 2000-A

May 28, 2014

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings affirms the rated class of Beckman Coulter, Inc., series BC 2000-A. A detailed list of rating actions follows at the end of this release.

KEY RATINGS DRIVERS

The affirmation is the result of stable performance of the two collateral properties as well as the credit worthiness of the tenant. The sole tenant at both properties, Danaher Corporation, is an investment grade-rated entity that operates five distinct business segments which specialize in the manufacturing, design, and marketing of products and services focused in the life sciences industry.

RATINGS SENSITIVITY

The Stable Outlook reflects increasing credit enhancement in association with loan amortization. In addition, Danaher Corporation continues to use both facilities as business critical locations. The company has added staffers to these locations steadily since 2012. 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, 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 loan's maturity date of June 30, 2018. Assuming no defaults or prepayments, the combined 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 with an adjustment for market vacancy, management fees, and assumed capital expenditures and leasing costs in order to derive a normalized operating cash flow. 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 May 2014 distribution date, the pool's aggregate certificate balance has decreased 25.3% to $81.9 million from $109.7 million at issuance. The loans mature Nov. 15, 2018 and have a weighted-average coupon of 7.5%.

Fitch has affirmed the following rating:

--$81.9 million class A at 'BBsf'; Outlook Stable.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (May 20, 2014);

--'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions' (Sept 20, 2013).

Applicable Criteria and Related Research:

Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=718468

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748821

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=832020

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.



Fitch Ratings

Primary Analyst

Jay Bullie

Associate Director

+1-312-368-2079

Fitch Ratings, Inc.

70 W. Madison Street

Chicago, IL 60602

or

Committee Chairperson

Mary MacNeill

Managing Director

+1-212-908-0785

or

Media Relations

Sandro Scenga, New York, +1 212-908-0278

sandro.scenga@fitchratings.com

Source: Fitch Ratings


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