Land Securities Capital Markets notes win AA ratings from Morningstar DBRS

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LandSec AA note ratings

Highlights

Morningstar DBRS assigned AA (sf) ratings with Stable trends to Land Securities Capital Markets' Classes A6 to A19 notes totaling GBP 2,892.5 million outstanding.
Analysis by Morningstar DBRS assumes GBP 750 million outstanding under authorised credit facilities, including a GBP 20 million buffer, while excluding unsecured commercial paper.
Land Securities Group PLC, with a market capitalisation over GBP 5.0 billion, supports the notes through its UK commercial property portfolio managed within the FTSE 100 Security Group structure.

Ratings cover note issuance and funding structure

As reported by Morningstar DBRS, DBRS Ratings Limited assigned AA (sf) ratings to Classes A6, A7, A11, A13, A14, A15, A16, A17, A18 and A19 issued by Land Securities Capital Markets Plc, with all trends marked Stable.

The issuer was incorporated in 2004 as a special purpose company to raise funds through note issuance. As of the date of the report, the 10 classes of fixed-rate notes have a current outstanding balance of GBP 2,892.5 million.

In its analysis, Morningstar DBRS assumes GBP 750 million is outstanding under authorised credit facilities, including a GBP 20 million buffer intended to align the aggregate balance with historical utilisation levels. Unsecured commercial paper is excluded from the analysis because it has no claim over the Security Group's collateral.

Property portfolio backing supports credit profile

The Land Securities Group invests in commercial property in the UK and provides ancillary services to occupiers across its portfolio. Its main activities include managing and investing in property assets, alongside selective property development.

The group is structured around two subgroups, the Security Group, which includes the obligors and the issuer, and the nonrestricted group. The Security Group can raise funding through note issuance by the issuer as well as other secured or unsecured financing arrangements, including authorised credit facilities.

Land Securities Group PLC is the ultimate holding company of the wider group and directly or indirectly owns all shares in the issuer and several subsidiaries within the Security Group. Morningstar DBRS notes that the sponsor is one of the UK's largest listed real estate companies and is part of the FTSE 100, with a current market capitalisation of more than GBP 5.0 billion.

In our earlier coverage of Hermitage 2026 plc’s UK equipment finance securitisation, we outlined the final provisional Morningstar DBRS ratings across Classes A to E and what they imply for noteholder credit risk. We also explained how the revolving period, liquidity reserve mechanics, and counterparty framework are designed to support interest and principal payments under stress.

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