KBRA Assigns Preliminary Ratings to UK Logistics 2026-2 DAC
KBRA UK (KBRA) is pleased to announce the assignment of preliminary ratings to five classes of UK Logistics 2026-2 DAC, a CMBS single-borrower transaction.
The collateral for the transaction is a £648.8 million limited recourse, first lien mortgage loan originated by Barclays Bank PLC in June 2026. The floating-rate loan has an initial two-year term and three one-year extension options.
The loan is secured by the borrower’s freehold (159 assets) and long leasehold (25 assets) interests in a portfolio of 184 industrial properties located throughout the UK with concentrations in the North, Midlands, and Scotland regions, representing 44.9%, 17.6%, and 16.9% of ALA, respectively. The portfolio comprises approximately 1,960 units, totaling 9.5 million square feet.
As of December 2025, the properties are 91.7% leased to approximately 1,700 unique tenants, comprising a variety of multinational, regional, and local firms.
KBRA analysed this transaction primarily using our European CMBS Rating Methodology, which includes our evaluation of the underlying collateral properties’ financial and operating performance, to determine KBRA’s estimate of sustainable net cash flow (KNCF) and KBRA value. KBRA capitalisation rates were applied to each asset’s KNCF to derive values that were, on an aggregate basis, 36.5% lower than the third-party aggregate value for the portfolio. The securitised loan has a KLTV of 102.4%.
To access ratings and relevant documents, click here.
Click here to view the report.
Methodologies
- CMBS: European CMBS Rating Methodology
- Structured Finance: Global Structured Finance Counterparty Methodology
Disclosures
Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.
A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be located here.
This credit rating is endorsed by Kroll Bond Rating Agency Europe Limited for use in the European Union. Information on a credit rating’s endorsement status is available on its rating page at KBRA.com.
Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
The rated entity is, or has a relationship with, one or more of KBRA Europe/KBRA UK shareholders that is required to be disclosed under applicable credit rating agency regulation in the EU and/or the UK. Please review KBRA’s shareholder disclosures, which are updated periodically.
About KBRA UK
Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Kroll Bond Rating Agency UK is located at 1 Connaught Place, 2nd Floor London, England.
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Contact
Analytical Contacts
Dinesh Thapar, Senior Director (Lead Analyst)
+44 20 8148 1067
dinesh.thapar@kbra.com
Rahat Virji Allana, Associate Director
+44 20 8148 1028
rahat.allana@kbra.com
Nitin Bhasin, Senior Managing Director, Global Head of CMBS (Rating Committee Chair)
+1 646-731-2334
nitin.bhasin@kbra.com
Business Development Contacts
Mauricio Noé, Co-Head of Europe
+44 20 8148 1010
mauricio.noe@kbra.com
Miten Amin, Managing Director
+44 20 8148 1002
miten.amin@kbra.com
