Fitch Affirms Beckman Coulter Net Lease P-T Ctfs Series BC 2000-A; Assigns Outlook
2009-06-30 21:21:03 -
Fitch Ratings affirms and assigns a Rating Outlook to the following class of the Beckman Coulter, Inc., series BC 2000-A.
--$106.7 million class A at 'BB-'; Outlook Stable.
The affirmations are the result of stable performance since Fitch's last rating action. The Rating Outlook reflects the likely rating changes over the next one to two years.
The loans are secured by two of
Beckman Coulter's office/research and development facilities, located in Brea, CA and Miami, FL. The buildings are 100% occupied by Beckman Coulter, which currently has an investment grade credit rating of 'BBB' with a Stable Outlook. Each property is subject to a NNN lease in which the tenant is obligated to make at a rate reflecting an amount equal to the loan's principal and interest payments, until the loan's maturity date of June 30, 2018 at which time there will be a balloon balance of approximately $53.1 million.
The property located in Miami is currently being specially serviced due to on-going litigation regarding the tenant's failure to pay sales taxes on rent. Beckman Coulter, the tenant, has requested a hearing with the Florida Department of Revenue to dispute the legitimacy of the sales tax charges and the borrower has initiated a legal action against Beckman Coulter for its failure to pay the sales taxes. Currently, a court date has been scheduled for September 2009. Beckman Coulter has escrowed funds to pay the obligations to the State should they not be successful in winning the suit. The loan remains current on its interest and principal payments required under the loan.
As part of its analysis, Fitch took the current in place rents and applied market vacancies, management fees and capital expenditure assumptions in order to derive a normalized operating cash flow for the properties. The resulting stressed debt service coverage ratio, based upon Fitch's stressed cash flow and a debt constant of 9.66% is 1.36 times.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com :
cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww .. .
Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
Fitch Ratings, ChicagoLauren Cerda, 312-606-2317Britt
Johnson, 312-606-2341Sandro Scenga, 212-908-0278(Media
Relations, New York)
sandro.scenga@fitchratings.com : mailto:sandro.scenga@fitchratings.com
