Moody's assumes that Capita will fully comply with the servicing standards that are outlined in the original servicing agreement which they have acceded to. Further, Moody's understands that there will be no changes to the terms of the servicing agreement for the loan and that the special servicing fee will remain unchanged. Generally, Moody's is of the opinion that the strategy and timing regarding the future work-out process for a loan in special servicing -- impacting the potential recovery proceeds -- is of significant importance in relation to the credit risk posed to investors.
Moody's believes that the replacement does not have an adverse effect on the credit quality of the Notes such that the Moody's ratings would be impacted. Moody's does not express an opinion as to whether the replacement could have other, non credit-related effects.
TRANSACTION OVERVIEW
Deco 14 - Pan Europe 5 B.V. closed in March 2007 and represents the securitisation of initially 13 mortgage loans originated by Deutsche Bank A.G. and Deutsche Bank S.p.A. Currently 12 loans remain in the pool and the loans are secured by first-ranking legal mortgages over 3,913 commercial and multi-family properties. The properties are located throughout Germany (88% of the current pool by underwriter market value), Italy (8%) and Bulgaria (4%). The properties are predominantly multi-family (75%) followed by office (14%), retail (10%), and mixed-use (1%).
As of April 2012, the total securitised loan pool balance was EUR 1,368 million, down from EUR 1,491 million at closing. The vast majority of redemption to date has been from the partial prepayment of the largest loan in the pool (the WOBA Loan) following property disposals as well as the prepayment of the Accor Loan (1.1% of the initial pool balance). Including the Sofia Loan, there are three loans currently in special servicing in the portfolio (13% of pool balance). The other two loans, the Arcadia and DD Karstadt Hilden Loan, are being specially serviced by Hatfield Philips International Limited.
RATING METHODOLOGY
The methodology used in this rating was Moody's Approach to Real Estate Analysis for CMBS in EMEA: Portfolio Analysis (MoRE Portfolio) published in April 2006. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.
Information in this press release supersede Moody's prior press release issued on 18 May 2012. Moody's prior assessment for the transaction is summarised in a press release dated 4 November 2011. The last Performance Overview for this transaction was published on 12 April 2012.
Deniz Yegenaga Analyst Structured Finance Group Moody'sInvestors Service Ltd. One Canada SquareCanary WharfLondon E14 5FA United Kingdom JOURNALISTS: 44 20 7772 5456 SUBSCRIBERS: 44 20 7772 5454 Andrea Daniels Senior Vice President Structured Finance Group JOURNALISTS: 44 20 7772 5456 SUBSCRIBERS: 44 20 7772 5454 Releasing Office: Moody's Investors Service Ltd. One Canada SquareCanary WharfLondon E14 5FA United Kingdom JOURNALISTS: 44 20 7772 5456 SUBSCRIBERS: 44 20 7772 5454 (C) 2012 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights reserved.
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