Creditreform Rating has confirmed the rating for the bearer bonds with the ISIN DE000A1HJWS8, issued by LRI Invest Securitization S.A., acting on behalf of its compartment Wohnen I with BBB. The outlook has been adjusted to negative (stable). The main reason for the adjustment of the outlook to negative (stable) is the current uncertainty about the progress of the current COVID-19 pandemic and the uncertainty about the effects of the COVID-19 containment measures on the underlying loans. In addition, medium and long-term effects from containment measures and a deteriorating economic environment could have a negative impact on the operational performance of the properties. The issue proceeds of this securitization were invested in the purchase of a junior debenture note and a subordinated loan facility, which in turn were sufficient to finance a residential property portfolio in North Rhine-Westphalia and a shopping center in Berlin. The purchased loans each participate subordinate to the senior loans in a priority collateral package, which consists, among other things, of mortgages on the properties. The current LTV ratios in connection with the stabilized annual net rental income confirm the rating at the current level.
According to our calculations of stressed scenarios, the average cash flows for the bearer bonds are sufficient to fully cover the claims under the bearer bonds.