Creditreform Rating has set the rating of the bearer-bonds with ISIN DE000A1ZSFK3 issued by Herrenhausen Investment S.A., acting on behalf of its Compartment 3 to BBB+. The outlook is set to negative (stable).
The issue proceeds of this securitization were used to purchase a junior loan, which in turn was used to finance a shopping center in Berlin. The purchased loan participates subordinated to the senior loan facility collateral package consisting, among other things, of mortgages on the property and further manadatory pledges. The current loan-to-value ratio in connection with the previously stabilized annual net rental income confirm the rating at the current level. The negative outlook results from the unforeseeable effects and the expectation of at least a temporary delay of payments of the loans, which could result from the COVID-19 pandemic. Medium and long-term effects from containment measures as well as a deteriorating economic environment could also have a negative impact on the operational performance of the property. According to our calculations, the average cash flow serving the bearer bonds, taking into account stressed scenarios, is sufficient to cover all claims under the bonds to the bondholders.