KBRA upgrades Taurus 2021-2 SP DAC ratings as leverage declines on Spanish office loan

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Kbra upgrades Taurus 2021-2

Highlights

KBRA upgraded Taurus 2021-2 SP DAC’s classes B, C, D, and E, driven by lower in-trust KLTV falling to 51.2% from 69.1% at the last review.
The remaining five Madrid office assets produced 15.5% higher base rent and a KNCF of 12.6 million euros, up from 11.8 million euros.
Despite deleveraging and higher rental income, KBRA notes elevated refinancing risk for the 92.2 million euro senior debt with 2027 maturity due to prior failed refinancing and 26.8% lease rollover exposure.

Collateral improvement and rating actions

As reported by Kroll Bond Rating Agency, KBRA upgraded the ratings on classes B, C, D and E of Taurus 2021-2 SP DAC and affirmed the AAA rating on class A after a surveillance review of the single-borrower CMBS transaction. The agency says the review shows lower in-trust KLTV since securitisation and since the previous review in October 2025, helped by deleveraging after a loan restructuring in September 2024 and the disposal of one property since the last review in July 2026.

KBRA also says a modest rise in rents on new leases and improved occupancy lift base rent for the remaining five properties by 15.5% versus the last review. Its analysis of the remaining collateral produces a KNCF of 12.6 million euros, up from 11.8 million euros, and a KBRA value of 180.2 million euros, or 1,278 euros per square metre, compared with 175.0 million euros, or 1,241 euros per square metre, previously.

The resulting in-trust KLTV falls to 51.2% from 69.1% at the last review, from 81.6% after the September 2024 loan restructuring, and from 90.8% at securitisation. The rating changes leave class A at AAA (sf), while class B rises to AA (sf) from AA- (sf), class C to A (sf) from A- (sf), class D to BBB (sf) from BBB- (sf), and class E to BB+ (sf) from BB (sf).

Refinancing risks remain before 2027 maturity

The transaction originally securitised a 139.9 million euro portion of a 269.9 million euro limited recourse, first lien mortgage financing secured by eight office assets in Spain. Since closing in September 2021, the senior loan has been reduced by 177.7 million euros through the sale of three properties, the September 2024 restructuring and related repayments, including the capex facility, as well as amortisation.

As of the August 2026 IPD, the senior outstanding debt balance stands at 92.2 million euros and mezzanine debt totals 25.3 million euros. The remaining collateral consists of five office assets in Madrid with a combined area of 140,952 square metres.

Despite the stronger leverage profile, KBRA says refinancing risk remains elevated because the loan matures in September 2027 and previously failed to refinance at its original September 2024 maturity, prompting the restructuring. Lease rollover risk also persists, with 26.8% of total base rent exposed to lease break options or expirations by the loan's amended fully extended maturity date in September 2027.

In our earlier coverage of Hainan Rubber’s offshore refinancing plan, we outlined the proposed subordinated perpetual sustainable securities to be issued by its majority-owned unit Halcyon Agri and guaranteed on a subordinated basis. We noted how the instrument features—its lower ranking in the capital structure and the option to defer coupons—shaped the rating outcome, alongside the agency’s view of leverage, liquidity, and expected state support.

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