OREANDA-NEWS. Fitch Ratings has affirmed Telereal Securitisation PLC's (Telereal) notes as follows:

GBP216.8m class A-3 notes due 2033 (XS0139445471) affirmed at 'AAsf'; Outlook Stable
GBP370.4m class A-4 notes due 2033 (XS0139446362) affirmed at 'AAsf'; Outlook Stable
GBP272.1 class A-5 notes due 2033 (XS0186854930) affirmed at 'AAsf'; Outlook Stable
GBP103.8m class A-6 notes due 2033 (XS0186855077) affirmed at 'AAsf'; Outlook Stable
GBP63.1m class A-7 notes due 2033 (XS0274201762) affirmed at 'AAsf'; Outlook Stable
GBP149.0m class A-8 notes due 2033 (XS0274204865) affirmed at 'AAsf'; Outlook Stable
GBP215m class B-2 notes due 2033 (XS0139654635) affirmed at 'BBBsf'; Outlook Positive
GBP35m class B-3 notes due 2033 (XS0140277772) affirmed at 'BBBsf'; Outlook Positive
GBP296.0m class B-4 notes due 2033 (XS0186855150) affirmed at 'BBBsf'; Outlook Positive
GBP114.6m class B-5 notes due 2033 (XS0186855234) affirmed at 'BBBsf'; Outlook Positive
GBP195m class B-6 notes due 2033 (XS0274208007) affirmed at 'BBBsf'; Outlook Positive
GBP193.4m class B-7 notes due 2033 (XS0275282878) affirmed at 'BBBsf'; Outlook Positive
GBP128.3m class C-1 notes due 2033 (XS0275279064) affirmed at 'BBBsf'; Outlook Positive
GBP58m class C-2 notes due 2033 (XS0275282282) affirmed at 'BBBsf'; Outlook Positive

Telereal Securitisation PLC 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/Positive) and located throughout the UK.

KEY RATING DRIVERS
The affirmation of the class A notes reflects Fitch's view on the vacant possession value of the underlying properties and the transaction's stable performance metrics. The affirmation of the class B and C notes reflects the Long-term Issuer Default Rating (IDR) of BT, the sole tenant of the underlying properties.

The loan-to-value ratio (LTV) as a percentage of vacant possession value stands at 90.4%, down from 92.6% at the same time last year due to scheduled amortisation. The class A notes have benefited from deleveraging over the same period. The current A note LTV stands at 44.0%, down from 45.8%. The senior ranking priority of the class A notes, coupled with low leverage means that a rating above that of the tenant can be achieved.

Fixed rental uplifts have helped annual income grow to GBP219.7m compared with GBP213.6m one year ago. This growth has more than offset the decrease in the number of assets securing the loan, which fell to 5,375 from 5,387 over the same period.

RATING SENSITIVITIES
Any rating action on BT would lead to a corresponding change in the rating of the class B and C notes. The rating of the class A notes is sensitive to drivers of long-term occupancy demand for the specialised properties comprising the pool, which depends on, among other things, technological developments, the telecommunications regulatory environment in the UK as well as alternative uses of the properties.

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.