Actual net interest coverage ratio is healthy at 1.36x and above the minimum covenant of 1.15x at the recent performance date in March 2010. Rent collection performance on the charged portfolio is strong at 100% at performance date and exceeds the minimum covenant of 90%. Credit support includes a 12-month debt service reserve (DSR) and fixed charge over specific properties. Sanctuary Housing Assn., the underlying borrower, has a strong management team, and strong operating and financial performance. Partial bullet maturity in September 2031 could result in refinancing risk, although in our view this risk is partially mitigated by the presence of some valuation and sinking fund covenants. The 'AA-' rating on the -110 million senior secured bonds due 2031 issued...
Companies mentioned in this report are: Sanctuary Capital PLC,Sanctuary Housing Assn.
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