(The following statement was released by the rating agency)
Oct 3 - Fitch Ratings has affirmed PICTS plc's notes as follows:
GBP153.16m class A (ISIN XS00202417134) CMBS floating-rate notes, due July 2039:affirmed at 'Asf'; Outlook Stable
The affirmation reflects the stable performance of Lloyds TSB Banking Group plc(LBG; 'A'/Stable) as reflected in its rating, of which Halifax Bank of Scotland(HBOS) is a wholly owned subsidiary. The notes are credit-linked to those of thesole tenant in the transaction, HBOS. Any change in LBG's rating is likely toaffect the ratings of the notes.
The transaction is a securitisation of rental income derived from a propertylocated at 33 Old Broad Street, London, which benefits from a 35-year lease toBank of Scotland, the obligations of which are guaranteed by HBOS. At closing,this landmark property had a market value of GBP134.7m and a vacant possessionvalue of GBP91m. The collateral occupies a prime location and comprises 17,865square metres of office space. The bond issuance had a loan-to-vacant possessionvalue ratio of 168% and is scheduled to fully amortise from rental income,starting from 2014.
Fitch will continue to monitor the performance of the transaction. Updatedsurveillance information and the new issue report are available at.
(Caryn Trokie, New York Ratings Unit)
((Caryn.Trokie@thomsonreuters.com; 646-223-6318; Reuters Messaging:rm://caryn.trokie.reuters.com@reuters.net))
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