NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings for the JPMCC 2015-UES securitization, a $500.0 million CMBS large loan transaction. JPMCC 2015-UES is collateralized by four first lien mortgage loans with an aggregate principal balance of $500.0 million originated by JPMorgan Chase Bank, National Association.
The four loans, which are not cross-collateralized or cross-defaulted, are each secured by the borrower’s fee simple interest in a Class-A, high-rise multifamily building. The assets are each located in New York City within the Upper East Side neighborhood of Manhattan and include 265 East 66th Street & The Solow Town Houses, One East River Place, One Sutton Place North, and Rivers Bend. The four properties range in size from 179 to 415 units and total 1,149 units. As of July 2015, the average occupancy of the collateral was 96.9%, with occupancies for individual properties ranging from 94.0% to 98.9%.
KBRA’s analysis of the transaction included a detailed evaluation of each asset’s cash flows using our CMBS Property Evaluation Guidelines and the application of our CMBS Single Borrower and Large Loan Rating Methodology. The results of the analysis produced an aggregate KBRA net cash flow (KNCF) of $34.8 million, which is 7.0% below the issuer’s NCF, and an aggregate KBRA value of $536.8 million, which is 53.4% below the combined appraisal values of the assets. As part of our analysis of the transaction, we also reviewed and considered third-party engineering, environmental, and appraisal reports; our own on-site inspection of the properties; and legal documentation.
For further details on KBRA’s analysis of the transaction, please see our Pre-Sale Report, entitled JPMCC 2015-UES, which was published today at www.kbra.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: JPMCC 2015-UES |
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| Class |
Initial Class
Balance |
Expected KBRA Rating | ||||||||||
| A | $243,750,000 | AAA(sf) | ||||||||||
| B | $50,000,000 | AA-(sf) | ||||||||||
| C | $36,250,000 | A-(sf) | ||||||||||
| D | $47,500,000 | BBB-(sf) | ||||||||||
| E | $70,027,000 | BB-(sf) | ||||||||||
| F | $52,473,000 | B+(sf) | ||||||||||
| X-A | $243,750,000(1) | AAA(sf) | ||||||||||
| X-B | $86,250,000(1) | AAA(sf) | ||||||||||
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1Notional balance |
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Representations & Warranties 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 disclosed in the offering documents when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report entitled JPMCC 2015-UES Representations & Warranties Report
Related Publications (available at www.kbra.com):
CMBS
Presale Report: JPMCC 2015-UES
CMBS
Property Evaluation Guidelines, published March 3, 2015
CMBS
Single Borrower and Large Loan Rating Methodology, published March 3,
2015
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About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).
