TEXT-S&P Afms Rating On Emerald Assets Ltd. - Portfolio 1 Notes

Mon Dec 17, 2012 11:27pm EST

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(The following was released by the rating agency)

OVERVIEW

-- Emerald Assets Ltd. - Portfolio 1 is a commercial mortgage backed securitization that is secured by a cross-collateralized portfolio of 36 industrial properties in Singapore.

-- One property is being removed from the collateral portfolio and three will be added to the collateral pool, taking the number of properties in the portfolio to 38.

-- We have affirmed our rating on the class P1-AAA-002 notes outstanding after reviewing the changes to the collateral pool.

SYDNEY (Standard & Poor's) Dec. 18, 2012--Standard & Poor's Ratings Services today affirmed its rating on one class of commercial-mortgage-backed securities (CMBS) issued by Emerald Assets Ltd. - Portfolio 1. Emerald Assets Ltd. - Portfolio 1 is a commercial mortgage backed securitization that is secured by a cross-collateralized portfolio of 36 industrial properties located in Singapore.

One property is being removed from the collateral portfolio and three will be added to the collateral pool, taking the number of properties in the portfolio to 38. We have affirmed our rating on the class P1-AAA-002 notes outstanding after reviewing the changes to the collateral pool.

The rating affirmation reflects our view that the rated notes are able to withstand stresses that are commensurate with the current rating levels. The transaction is a single-borrower secured loan CMBS secured by a portfolio of industrial properties owned by Ascendas Real Estate Investment Trust A-REIT. The notes were initially issued in 2007.

The rating affirmation reflects:

-- The strength of the secured loan between Emerald Assets and A-REIT;

-- The credit quality of the underlying collateral properties;

-- The cash flow coverage levels and overcollateralization provided;

-- The liquidity support provided; and

-- The quality of asset management.

STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Rule applies to in-scope securities initially rated (including preliminary ratings) on or after Sept. 26, 2011. If applicable, the Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available at "here".

REGULATORY DISCLOSURES

Please refer to the initial rating report for any additional regulatory disclosures that may apply to a transaction.

RATING AFFIRMED

Class Rating P1-AAA-002 AA- (sf)

RELATED CRITERIA AND RESEARCH

-- Counterparty Risk Framework Methodology And Assumptions, Nov. 29, 2012 -- Asia Pacific Feels The Pressure Of Ongoing Global Economic Uncertainty, Sept. 23, 2012 -- CMBS Global Property Evaluation Methodology, Sept. 5, 2012 -- Global Structured Finance Scenario And Sensitivity Analysis: The Effects Of The Top Five Macroeconomic Factors, Nov. 4, 2011 -- Principles of Credit Ratings, Feb. 16, 2011

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