KBRA Assigns Preliminary Ratings to Flexential Series 2021-1 and 2021-2

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to the Series 2021-1 and 2021-2 notes issued by Flexential Issuer, LLC and Flexential Co-Issuer, LLC, a data center securitization.

The transaction represents Flexential Corp.’s first securitization. Flexential Series 2021-1 will consist of three fixed rate term notes, Class A-2, Class B, and Class C Notes and a variable funding note, Class A-1 Note. Flexential Series 2021-2 will consist of three fixed rate term notes, Class A-2, Class B and Class C Notes.

The notes will be secured by 23 data centers. This includes leasehold interests in 16 (71.6% of annualized adjusted net operating income (“NOI”) multi-customer enterprise data centers located in eleven markets and fee simple ownership interests in seven (28.4% of NOI) multi-customer enterprise data centers located in seven markets. The data centers are comprised of approximately 1.3 million square feet (sf) of data center space and can provide approximately 82.6 megawatts (MW) of critical load power to customers. The portfolio is currently occupied by 2,612 unique customers.

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Related Publications

• US CMBS Property Evaluation Methodology
• General Global Rating Methodology for Asset‑Backed Securities
• Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority pursuant to the Temporary Registration Regime. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

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