OREANDA-NEWS. Fitch Ratings has downgraded Juturna (European Loan Conduit No. 16) plc and Pacific Quay Finance Plc as follows:

Juturna (European Loan Conduit No.16) PLC

GBP737m class A (XS0172827783) downgraded to 'A+sf' from 'AA-sf'; Outlook Negative

Pacific Quay Finance PLC

GBP122.5m class A (XS0196065972): downgraded to 'A+sf' from 'AA-sf'; Outlook Negative

Juturna and Pacific Quay are fully amortising sale and lease-back transactions, securitising income under leases of the BBC's London Broadcasting House and Glasgow Pacific Quay headquarters respectively. The sole tenant under the leases is the BBC.

KEY RATING DRIVERS

The downgrade of the notes follows a change in Fitch's view of the BBC's credit quality. As a government-linked entity, the BBC's credit strength is driven by the credit strength of the United Kingdom. Fitch downgraded the UK to 'AA'/Negative on 27 June 2016.

The transactions are structured so that the underlying loan will be fully amortised through payment of contracted rental income up to loan maturity. Lease payments as well as loan balance are indexed to a retail price index (RPI), subject to a floor of 0% and cap of 5%. For each transaction, an issuer-level swap converts payments under the loan into fixed-rate payments due under the notes.

RATING SENSITIVITIES

Fitch applied a single tenant CMBS rating approach, whereby the rating is floored by the BBC's credit profile. Any factors that could affect BBC's credit profile would likely have a corresponding impact on the notes' rating.

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 pools and the transactions. 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.

The majority of the underlying assets have ratings or credit opinions from Fitch and/or other Nationally Recognized Statistical Rating Organizations and/or European Securities and Markets Authority registered rating agencies. Fitch has relied on the practices of the relevant Fitch groups and/or other rating agencies to assess the asset portfolio information. 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 information below was used in the analysis.

- Servicer Reporting as provided by the servicers as of April and May 2016