Nov 06 - Fitch Ratings has downgraded Talisman-3 Finance p.l.c.'s class D notes and affirmed
the class E and F notes, as follows:
EUR42.7m class D (XS0256115865) downgraded to 'Csf' from 'CCsf'; Recovery
Estimate (RE) 80%
EUR10m class E (XS0256116327) affirmed at 'Csf'; RE 0%
EUR5m class F (XS0256116673) affirmed at 'Csf'; RE 0%
The downgrade of the class D notes follows the announcement of final recoveries
on the Berlin/Dresden loan, indicating that approximately EUR5.7m of the class D
notes will be written off at the January 2013 interest payment date (IPD). The
class E and F notes will be entirely written off at the same time.
The recoveries were applied to the notes sequentially in October 2012, redeeming
the class B notes (EUR13.7m) and C notes (19.6m) in full and the class D notes
in part (by EUR9.8m). As the special servicer confirmed that no more recoveries
are expected after the IPD, the corresponding losses will be allocated to the
class D, E and F notes three months in arrears.
The only remaining loan, Waterloo (EUR27.2m), is performing well. Vacancy is
currently at 2.8%, the lowest level since origination and slightly down from
2.9% a year ago. The stability of the collateral is reflected in the December
2010 re-valuation, which showed only a modest 1.3% decline in asset value since
December 2005. Fitch expects a full recovery on this loan, ultimately redeeming
the remainder of Class D.
A performance report will shortly be available on www.fitchratings.com.