Rating Action: Moody’s assigns provisional ratings to notes to be issued by Vita Scientia 2022-1 DACGlobal Credit Research – 28 Mar 2022EUR 185.3 million of CMBS provisionally ratedLondon, March 28, 2022 — Moody’s Investors Service (“Moody’s”) has assigned the following provisional ratings to the debt issuance of Vita Scientia 2022-1 DAC (the “Issuer”):….EUR103.8M Class A Commercial Mortgage Backed Notes due 2033, Assigned (P)Aaa (sf)….EUR20.1M Class B Commercial Mortgage Backed Notes due 2033, Assigned (P)Aa3 (sf)….EUR23.7M Class C Commercial Mortgage Backed Notes due 2033, Assigned (P)A3 (sf)….EUR37.7M Class D Commercial Mortgage Backed Notes due 2033, Assigned (P)Baa3 (sf)Moody’s has not assigned provisional ratings to the Class X1 Certificates, the Class X2 Certificates, or the Issuer Loan.Vita Scientia 2022-1 DAC is a true sale transaction backed by a EUR188.8 million senior loan. The issuer will use the notes proceeds to partly fund the liquidity reserve and to acquire the senior loan granted by Goldman Sachs Bank Europe SE to the borrower to refinance the acquisition of eight life science properties, six in the Netherlands and two in Germany. Outside the securitization there will be a EUR76.2 million mezzanine loan that is contractually and structurally subordinated to the senior loan and secured by a second lien on the properties.RATINGS RATIONALEToday’s rating action is based on: (i) Moody’s assessment of the real estate quality and characteristics of the collateral; (ii) analysis of the loan terms; and (iii) the expected legal and structural features of the transaction.The key parameters in Moody’s analysis are the default probability of the securitised loan (both during the term and at maturity) as well as Moody’s value assessment of the collateral. Moody’s derives from these parameters a loss expectation for the securitised loan. Moody’s total default risk assumption is medium for the loan.The key strengths of the transaction include: (i) good quality properties with a Moody’s property grade of 1.5; (ii) diversified tenant base; (iii) low default risk during the term; (iv) favourable market fundamentals for the life-sciences sector; and (v) a strong sponsor, TPG Real Estate III Management, LLC, a global real estate investment manager.Challenges in the transaction include: (i) the EUR76.2 million mezzanine facility increases the overall leverage and combined with the lack of amortization result in a medium default risk at refinancing; (ii) no financial default covenants prior to a permitted change of control; (iii) principal proceeds from property sales are allocated fully pro rata allocation to the notes, which provides for a lower cushion against increased concentration risk following prepayments due to asset sales.The Moody’s Value is EUR277.7M or 21.5{4e908c29df01d999f087e4f922633998e2ded1c72f05851cd6252034960daee5} lower than the underwriter’s value. The main driver for the variance is the higher cap rate used to derive Moody’s value. The Moody’s LTV ratio for the securitised loan is 68.0{4e908c29df01d999f087e4f922633998e2ded1c72f05851cd6252034960daee5}, increasing to 81.7{4e908c29df01d999f087e4f922633998e2ded1c72f05851cd6252034960daee5} including the mezzanine loan. Moody’s property grade of 1.5 (on a scale of 1 to 5 with 1 being the best) for the underlying portfolio reflects a good quality collateral pool.The principal methodology used in these ratings was “Moody’s Approach to Rating EMEA CMBS Transactions” published in May 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBS_1264385. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.Factors That Would Lead to an Upgrade or Downgrade of the Ratings:Main factors or circumstances that could lead to an upgrade of the ratings are generally: (i) an increase in the property values backing the underlying loan; or (ii) a decrease in the default probability driven by improving loan performance or decrease in refinancing risk.Main factors or circumstances that would lead to a downgrade of the ratings are generally: (i) a decline in the property values backing the underlying loan; (ii) an increase in the default probability of the loan driven by deteriorating loan performance or increase in refinancing risk.REGULATORY DISCLOSURESFor further specification of Moody’s key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody’s Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.Further information on the representations and warranties and enforcement mechanisms available to investors are available on http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBS_1319767.The analysis relies on a Monte Carlo simulation that generates a large number of collateral loss or cash flow scenarios, which on average meet key metrics Moody’s determines based on its assessment of the collateral characteristics. Moody’s then evaluates each simulated scenario using model that replicates the relevant structural features and payment allocation rules of the transaction, to derive losses or payments for each rated instrument. The average loss a rated instrument incurs in all of the simulated collateral loss or cash flow scenarios, which Moody’s weights based on its assumptions about the likelihood of events in such scenarios actually occurring, results in the expected loss of the rated instrument.Moody’s did not use any stress scenario simulations in its analysis.For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody’s rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider’s credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.The ratings have been disclosed to the rated entity or its designated agent(s) and issued with no amendment resulting from that disclosure.These ratings are solicited. Please refer to Moody’s Policy for Designating and Assigning Unsolicited Credit Ratings available on its website www.moodys.com.Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.Moody’s general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1288235.The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody’s affiliates outside the EU and is endorsed by Moody’s Deutschland GmbH, An der Welle 5, Frankfurt am Main 60322, Germany, in accordance with Art.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the Moody’s office that issued the credit rating is available on www.moodys.com.Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody’s legal entity that has issued the rating.Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating. Maria Divid, CFA Vice President – Senior Analyst Structured Finance Group Moody’s Investors Service Ltd. One Canada Square Canary Wharf London, E14 5FA United Kingdom JOURNALISTS: 44 20 7772 5456 Client Service: 44 20 7772 5454 Christophe de Noaillat MD – Structured Finance Structured Finance Group JOURNALISTS: 44 20 7772 5456 Client Service: 44 20 7772 5454 Releasing Office: Moody’s Investors Service Ltd. 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