NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings to 15 classes of the COMM 2013-CCRE13 transaction (see ratings listed below). COMM 2013-CCRE13 is a $1.1 billion CMBS conduit transaction collateralized by 53 fixed-rate commercial mortgage loans that are secured by 73 properties.
The loans have principal balances ranging from $1.1 million to $125.0 million for the largest loan in the pool, which is secured by 60 Hudson Street (11.3%), a 24-story, 1.1 million sf, Class-B office/data center building located in the Tribeca neighborhood of Manhattan, New York. The top five loans, which also include Saint Louis Galleria (9.0%), Kalahari Resort and Convention Center (9.0%), 175 West Jackson (8.1%), and Hilton Universal Studios (7.7%), represent 45.2% of the initial pool balance, while the top 10 loans represent 61.5%. 44 loans have 10-year terms (82.3%) and nine loans have five-year terms (17.7%). More than half of the pool balance (21 loans, 57.8%) is comprised of loans with interest only (IO) periods. The balance of the pool consists of amortizing balloon loans (32 loans, 42.2%) that require principal payments throughout their respective terms. The collateral properties are located in 20 states. There are five states which exceed 10.0% of the pool balance, which include California (16.6%), New York (12.6%), Texas (11.8%), Illinois (11.3%) and Ohio (10.4%). The pool has exposure to three property types with concentrations in excess of 15.0%: office (30.4%), hospitality (21.3%) and retail (20.4%).
KBRA’s analysis of the transaction incorporated our multi-borrower rating process that begins with our analysts' evaluation of underlying collateral properties' financial and operating performance, which determine KBRA’s estimate of sustainable net cash flow (KNCF) and KBRA value using our CMBS Property Evaluation Guidelines. On an aggregate basis, KNCF was 3.9% less than the issuer cash flow. KBRA capitalization rates were applied to each asset’s KNCF to derive values that were, on an aggregate basis, 33.4% less than third party appraisal values. The pool has an in-trust KLTV of 90.8% and an all-in KLTV of 91.6%. The model deploys rent and occupancy stresses, probability of default regressions, and loss given default calculations to determine losses for each loan, which are then used to assign the credit ratings.
For complete details on the analysis, please see our Presale Report, COMM 2013-CCRE13, published today at www.krollbondratings.com. The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.
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Preliminary Ratings Assigned: COMM 2013-CCRE13 |
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| Class | Expected Rating | Balance | ||||||||||
| A-1 | AAA(sf) | $51,735,000 | ||||||||||
| A-2 | AAA(sf) | $187,219,000 | ||||||||||
| A-3 | AAA(sf) | $175,000,000 | ||||||||||
| A-4 | AAA(sf) | $287,132,000 | ||||||||||
| A-SB | AAA(sf) | $72,741,000 | ||||||||||
| X-A(1) | AAA(sf) | $878,846,000 | ||||||||||
| X-B(2) | AAA(sf) | $154,765,000 | ||||||||||
| X-C(3) | NR | $71,856,197 | ||||||||||
| A-M | AAA(sf) | $105,019,000 | ||||||||||
| B | AA(sf) | $46,982,000 | ||||||||||
| PEZ(4) | A(sf) | $204,511,000 | ||||||||||
| C | A(sf) | $52,510,000 | ||||||||||
| D | BBB-(sf) | $55,273,000 | ||||||||||
| E | BB(sf) | $22,110,000 | ||||||||||
| F | B+(sf) | $9,673,000 | ||||||||||
| G | NR | $40,073,197 | ||||||||||
| SLG | BBB-(sf) | $20,000,000 | ||||||||||
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1 |
Notional balance equal to the aggregate balance of the Class A-1, A-2, A-3, A-4, A-SB and A-M certificates. | |
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2 |
Notional balance equal to the aggregate outstanding balance of the Class B, C, and D certificates. | |
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3 |
Notional balance equal to the aggregate outstanding balance of the Class E, F, and G certificates. | |
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4 |
Loan specific class of certificates that is only entitled to distributions from payments received with respect to the junior participation interest in the Saint Louis Galleria loan. |
17g-7 Disclosure
All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report entitled CMBS: COMM 2013-CCRE13 17g-7 Disclosure Report.
Related publications (available at www.krollbondratings.com):
CMBS: U.S. CMBS Multi-Borrower Rating Methodology, published February 23, 2012
CMBS Property Evaluation Guidelines, published June 10, 2011
