OREANDA-NEWS. Fitch Ratings understands from discussions with the issuer that Land Securities Capital Markets Plc's (LSCM) is considering changing its collateral sector concentration limits. According to the information provided to the agency, Fitch considers there to be no impact on the ratings from the proposed changes.

With the proposed amendment, the concentration limit for the office sector would increase to 85% from 60%, and an allowance for up to 20% of the collateral to be in the leisure & hotels sector would be introduced. Meanwhile both industrial and residential properties would be more tightly limited, down at 20% from the current 35%. All other sector concentration limits would be unchanged.

The rating is not based on worst case portfolio construction (or maximum permitted leverage). While the rating is primarily driven by EMEA CMBS criteria, Fitch's view on Land Securities' corporate credit strength is a key input. Fitch does not consider the proposed changes as indicative of a fundamental shift in the strategy of Land Securities, but rather as a means of accommodating an evolving approach to asset allocation by LSCM.

Fitch will continue to monitor the concentration of all sector types within the portfolio. Utilisation of the sector concentration flexibility may lead to a negative rating action on the notes.