OREANDA-NEWS. June 16, 2015. Fitch Ratings has downgraded Titan Europe 2007-1 (NHP) Limited's class B, C, D and E notes to 'D' from 'C' and has as a result withdrawn their ratings.

KEY RATING DRIVERS
Following the recent acquisition of NHP, the borrower in the transaction, by Formation Capital (in partnership with Safanad and Court Cavendish), the final recovery determination transferred to the issuer's collection account amounted to GBP459.4m, only marginally higher by 0.4% than expected in November 2014. This amount is insufficient for the class B, C, D and E notes to recover any amounts of cash. The unrated class A notes suffered a loss of 9.6% of its original amount of debt outstanding.

Fitch had previously downgraded the class B, C, D and E notes to 'C' from 'CC' as default was inevitable, but that this outcome was being only withheld as a result of the delays caused by the disputes between notably the swap providers and the class A noteholders with regard to the allocation of funds at issuer level. As per the regulatory information services (RIS) notification published on 21 May 2015, Fitch understands that the parties involved have reached a settlement and the total application of funds was effectively completed, thereby leading to a default of the notes.

RATING SENSITIVITIES
N/A

SUMMARY OF CREDIT
Titan Europe 2007-1 (NHP) was a securitisation of 275 nursing homes owned by NHP, which are let on long leases to third-party operators active in the UK healthcare sector (in particular HC-One, a subsidiary of the borrower group, which accounts for around 85% of the estate).