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Kroll Bond Rating Agency Assigns Preliminary Ratings to COMM 2014-FL5

NEW YORK–(BUSINESS WIRE)–

Kroll Bond Rating Agency, Inc. (KBRA) is pleased to announce the
assignment of preliminary ratings to five classes of the COMM 2014-FL5
securitization, a $557.1 million large loan floating rate CMBS
transaction (see ratings listed below).

The collateral for the transaction consists of six first-lien mortgage
loans, five of which have been bifurcated into a senior pooled component
and one or more subordinate non-pooled components totaling $377.9
million and $119.2 million, respectively. Each subordinate non-pooled
loan component serves as the sole source of cash flow for a
loan-specific class of certificates, none of which are rated by KBRA. In
addition, one loan Sava II Portfolio ($60.0 million), will not be pooled
and proceeds received with respect to this loan are the sole source of
cash flow for the Class “SV” certificates which are not rated by KBRA.
As a result, the trust loan counts, balances and percentages herein
exclude the non-pooled Sava II Portfolio loan.

The pooled senior loan components consist of K Hospitality Portfolio
($113.9 million), Peachtree Center Portfolio ($117.4 million), Hilton
Fort Lauderdale ($58.3 million), Park Central ($50.9 million), and
Marriott Fairview Park ($37.5 million). The majority of the pool
consists of lodging properties (61.9%) which serve as collateral for
three loans, K Hospitality Portfolio ($113.9 million, 20 assets), Hilton
Fort Lauderdale ($58.3 million, 1 asset), and Marriott Fairview Park
($37.5 million, 1 asset). Office assets (32.9%) secure the Marriott
Fairview Park loan ($37.5 million, 1 asset) and a large component of the
Peachtree Center Portfolio loan ($117.4 million, 6 assets). The
remaining property type exposures consist of the parking (2.7%, 3
assets) and retail (2.4%, 1 asset) components of the Peachtree Center
Portfolio loan. The properties are located in seven states with three
individual state exposures that represent more than 10.0% of the pool
balance: Texas (32.2%), Georgia (25.3%) and Florida (17.5%).

KBRA’s analysis of the transaction involved a detailed evaluation of the
underlying cash flows using our CMBS Property Evaluation Guidelines and
the application of our CMBS Single-Borrower & Large Loan Rating
Methodology. The results of the analysis yielded a KNCF for the
underlying collateral properties that was, on average, 3.4% less than
the issuer cash flow for the pooled loan components. KBRA applied our
stressed capitalization rates to the KNCF to arrive at valuations of the
underlying properties. The KBRA values were, on average, 34.9% less than
the appraiser’s as-is valuation for the pooled loan components. The
resulting KBRA in-trust loan to value (KLTV) was 68.9% for the pooled
loan components and the KLTV was 90.9% for the total in-trust balance,
inclusive of the subordinate loan components. Four of the five pooled
loans have additional financing in place in the form of mezzanine debt.
Inclusive of this additional debt, the weighted average all-in KLTV for
the trust assets was 114.9%. As part of our analysis of the transaction,
we also reviewed and considered third party engineering and
environmental reports, our analysts’ site visits to the collateral
properties, and the transaction structure.

For complete details on the analysis, please see our presale report, COMM
2014-FL5
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.

 

 

 

 

 

 

 

 

 

 

Preliminary Ratings Assigned: COMM 2014-FL5

 

Class

 

 

 

 

Balance

 

 

 

 

Expected Rating

A

 

 

 

 

$210,399,000

 

 

 

 

AAA(sf)

X-CP(1)

 

 

 

 

$377,863,000

 

 

 

 

AAA(sf)

X-EXT(1)

 

 

 

 

$377,863,000

 

 

 

 

AAA(sf)

B

 

 

 

 

$60,706,000

 

 

 

 

AA-(sf)

C

 

 

 

 

$31,547,000

 

 

 

 

A-(sf)

D

 

 

 

 

$75,211,000

 

 

 

 

NR

KH1(2)

 

 

 

 

$32,750,000

 

 

 

 

NR

KH2(2)

 

 

 

 

$21,045,200

 

 

 

 

NR

HFL1(2)

 

 

 

 

$16,772,000

 

 

 

 

NR

HFL2(2)

 

 

 

 

$11,959,000

 

 

 

 

NR

MFP1(2)

 

 

 

 

$10,375,000

 

 

 

 

NR

MFP2(2)

 

 

 

 

$5,098,000

 

 

 

 

NR

PC1(2)

 

 

 

 

$9,197,000

 

 

 

 

NR

PC2(2)

 

 

 

 

$3,390,000

 

 

 

 

NR

PCH(2)

 

 

 

 

$8,632,000

 

 

 

 

NR

SV1(3)

 

 

 

 

$25,622,000

 

 

 

 

NR

SV-X-CP(3)

 

 

 

 

$60,000,000

 

 

 

 

NR

SV-X-EXT(3)

 

 

 

 

$60,000,000

 

 

 

 

NR

SV2(3)

 

 

 

 

$10,018,000

 

 

 

 

NR

SV3(3)

 

 

 

 

$10,356,000

 

 

 

 

NR

SV4(3)

 

 

 

 

$13,995,000

 

 

 

 

NR

 

1 Notional amount

2 Represents a loan-specific class of certificates and is
only entitled to distributions from the corresponding subordinate
non-pooled component of the related mortgage loan.

3 Represents a loan-specific class that is only
entitled to proceeds received with respect to the Sava II
Portfolio 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 here.

Related publications (available at www.kbra.com):

CMBS:
COMM 2014-FL5 Presale Report

CMBS:
Single Borrower & Large Loan Rating Methodology, published August 8, 2011

CMBS
Property Evaluation Guidelines, published June 10, 2011

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).

BondsLoansCMBS
Contact:
Kroll Bond Rating Agency
Analytical:

Aleksandra Simanovsky, 646-731-2434

asimanovsky@kbra.com

or

Robin Regan, 646-731-2358

rregan@kbra.com

or

Michael Brown

John Grosso

646-731-2307

mbbrown@kbra.com

Read more here:
Kroll Bond Rating Agency Assigns Preliminary Ratings to COMM 2014-FL5

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