OREANDA-NEWS. March 10, 2015. Fitch Ratings has affirmed Talisman-4 Finance plc, as follows:

EUR73.2m class A (XS0263096389) affirmed at 'Bsf'; Outlook Negative
EUR39.4m class B (XS0263098161) affirmed at 'CCsf'; Recovery Estimate (RE) 10%
EUR39.4m class C (XS0263098914) affirmed at 'Csf'; RE 0%
EUR3.8 m class D (XS0263099722) affirmed at 'Dsf'; RE 0%
EUR0m class E (XS0263100835) affirmed at 'Dsf'; RE 0%
EUR0m class F (XS0263101304) affirmed at 'Dsf'; RE 0%
EUR0m class G (XS0263101569) affirmed at 'Dsf'; RE 0%

The transaction is a securitisation of originally eight commercial mortgage loans secured on assets located in Germany. As of the January 2015 interest payment date, only one loan remained.

KEY RATING DRIVERS
The affirmation is driven by the stable performance of the sole remaining loan. The DT-12 loan, is secured by 12 office properties located across Germany. The properties are fully let to Deutsche Telekom (BBB+/Stable), although there is a high level of vacancy and sub-letting. For five assets, the leases expired in February 2015. Three assets (Mannheim, Nurenberg and Potsdam) have been fully vacated and two have been partially vacated (Kronshagen and Dusseldorf).

Since Fitch's last review, the cash trap mechanism allowed the repayment of EUR4.9m. As a result, the loan-to-value ratio currently stands at 171.7% based on the February 2014 valuation of EUR90.7m. Fitch understands that negotiations are currently ongoing with several interested parties. Closing the portfolio sale is critical for the performance of the transaction prior to the legal final maturity in July 2015.

Fitch's estimated 'Bsf' recovery amount is EUR76.2m.

RATING SENSITIVITIES
The approaching legal final maturity in July 2015 is likely to trigger a further downgrade if the portfolio sale does not materialise in the upcoming months.

Fitch will continue to monitor the performance of the transaction.

The latest surveillance data is available at the below link:
https://www.fitchratings.com/creditdesk/sectors/perf_analytics/esf/deal_summ/download_file.cfm?deal_id=87148547