OREANDA-NEWS. Fitch Ratings has upgraded Telereal Secured Finance PLC's (Telereal) GBP441.8m fixed rate notes due December 2033 (XS0987936076) to 'BBB+sf' from 'BBBsf'. The Outlook is Stable.

Telereal is a securitisation of a fully-amortising loan secured by rental cash flows derived from a portfolio of operational properties occupied by British Telecommunications plc (BT; BBB+/Stable) and located throughout the UK.

KEY RATING DRIVERS

The upgrade follows a similar rating action on BT and the telecom's continued demand for the properties that make up the underlying portfolio (see "Fitch Upgrades BT to 'BBB+'; Outlook Stable" dated 4 February 2016 at www. fitchratings. com).

The notes are scheduled to fully amortise at the maturity date in 2033, with debt service covered by rental income paid by BT and other contracted income. As BT has no further allowance to vacate properties without paying compensation, for any properties it does vacate it must make compensation payments, which more than cover the loss of future rents for the purposes of debt repayment. As a result, the bonds are considered fully credit-linked to BT.

RATING SENSITIVITIES

Any rating action on BT would lead to a corresponding change in the rating of the bonds.

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation to this rating action.

DATA ADEQUACY

Fitch has checked the consistency and plausibility of the information it has received about the

Performance of the asset pool and the transaction. There were no findings that were material to this analysis. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring.

Fitch did not undertake a review of the information provided about the underlying asset pool ahead of the transaction's initial closing. The subsequent performance of the transaction over the years is consistent with the agency's expectations given the operating environment and Fitch is therefore satisfied that the asset pool information relied upon for its initial rating analysis was adequately reliable.

Overall, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable.

Sources of Information:

The sources of information used to assess these ratings were the issuer, servicer, and periodic cash management and servicer reports.