Scope Ratings UK Limited (Scope) monitors and reviews its credit ratings on an ongoing basis and at least annually, or every six months in the case of sovereigns, sub-sovereigns and supranational organisations.

Scope performs monitoring reviews to determine whether material changes and/or changes in macroeconomic or financial market conditions could have an impact on the credit ratings. Scope considers all available and relevant information when undertaking the monitoring review.

Monitoring reviews are conducted by performing a peer comparison, benchmarking against the rating-change drivers, and/or reviewing the credit ratings’ performance over time, as deemed appropriate by the Lead Analyst or Analytical Team Head, in addition to an assessment of all aspects of the relevant methodology/ies, including key rating assumptions and model(s). Scope publicly announces the completion of each monitoring review on its website.

Scope completed the monitoring review for Shelby Real Estate Funding Limited on 31 October 2024.

The credit ratings remain as follows:

Class A notes (ISIN XS2537092350): GBP 2,450.0m: AAA_SF

Class B notes (ISIN XS2537093838): GBP 525.0m: AA-_SF

This monitoring note does not constitute a credit rating action, nor does it indicate the likelihood that Scope will conduct a credit rating action in the short term. Information about the latest credit rating action connected with this monitoring note along with the associated rating history can be found on www.scoperatings.com.

Key rating factors

There were no material changes to the transaction since our previous review. The transaction is still in reinvestment period. Performance has been strong, with no reported defaults of loans in the portfolio; none of the reinvestment covenants has been breached to date; and portfolio stratifications have not changed materially. Scope’s review also factored in our economic outlook on the UK and on the CRE sector, which have slightly improved on a year-on-year basis. Furthermore, we monitored the transaction’s key counterparties and the coverage provided by the liquidity facility. Both counterparty risk and liquidity risk remain sufficiently mitigated, relative to the assigned rating levels.
 
The methodologies applicable for the reviewed ratings (General Structured Finance Rating Methodology, 6 March 2024; Counterparty Risk Methodology, 10 July 2024; CRE Loan and CMBS Rating Methodology, 3 November2023) are available on https://scoperatings.com/governance-and-policies/rating-governance/methodologies.
This monitoring note is issued by Scope Ratings UK Limited at 52 Grosvenor Gardens, London, SW1W 0AU, +44 207 8245180
Lead analyst Adam Plajner, Associate Director

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