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Kroll Bond Rating Agency Assigns Preliminary Ratings to BAMLL 2014-FL1

NEW YORK–(BUSINESS WIRE)–

Kroll Bond Rating Agency, Inc. (KBRA) is pleased to announce the
assignment of preliminary ratings to five classes of the BAMLL 2014-FL1
securitization, a $432.6 million large loan floating rate CMBS
transaction (see ratings listed below).

Two of the loans have been participated into senior pooled and
subordinate non-pooled participations, both of which will be contributed
to the trust. Proceeds received in connection with the senior
participations and the non-participated loans will be used to make
distributions on the pooled certificates and each of the non-pooled
subordinate participations serves as the sole source of cash flow for a
loan-specific class of certificates. Unless otherwise indicated, all
percentage references reflect the aggregate in-trust balance of both the
pooled and non-pooled components.

The trust assets consist of Lynnhaven Mall (54.3%), PGA National Resort
& Spa (22.2%), Warner Center Marriott (11.9%) and Estancia La Jolla
Hotel & Spa (11.6%). Each mortgage loan is secured by a single property.
The related borrowers have a fee simple interests in three collateral
properties (88.4%) and leasehold interest in one property, Estancia La
Jolla Hotel & Spa (11.6%). The properties are located in three states,
Virginia (54.3%, 1 property), California (23.5%, 2) and Florida (22.2%,
1). The pool has exposure to two property types, retail (54.3%) and
lodging (45.7%), and the lodging exposure is comprised of two resort
properties (33.8%) and one full service hotel (11.9%).

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, 2.5% less than
the issuer cash flow. KBRA applied our stressed capitalization rates to
the KNCF to arrive at valuations of the underlying properties. The KBRA
values were, on average, 30.4% less than the appraiser’s valuation. The
resulting KBRA loan to value (KLTV) was 85.7% for the pooled loans and
88.8% for the total in-trust balance. The financing for three of the
properties (45.7%) also includes $89.9 million of debt held outside the
trust in the form of $44.9 million of mezzanine debt, a $23.0 million
subordinate B-note, and $22.0 million of preferred equity. Inclusive of
this additional debt, the weighted average all-in KLTV was 106.5%. As
part of our analysis, we also reviewed and considered third party
engineering and environmental reports, our analysts’ site visits to the
collateral properties, and the loan and securitization structures.

For complete details on the analysis, please see our presale report, BAMLL
2014-FL1
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: BAMLL 2014-FL1

Class

 

 

 

 

Balance

 

 

 

 

Expected Rating

A

 

 

 

 

$197,147,000

 

 

 

 

AAA(sf)

X-CP(1)

 

 

 

 

$418,953,000

 

 

 

 

AAA(sf)

X-EXT(1)

 

 

 

 

$418,953,000

 

 

 

 

AAA(sf)

B

 

 

 

 

$55,223,000

 

 

 

 

AA-(sf)

C

 

 

 

 

$38,875,000

 

 

 

 

A-(sf)

D

 

 

 

 

$54,845,000

 

 

 

 

NR

E

 

 

 

 

$72,863,000

 

 

 

 

NR

ELJ(2)

 

 

 

 

$8,285,000

 

 

 

 

NR

PGA(2)

 

 

 

 

$5,397,000

 

 

 

 

NR

1 Notional amount

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

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

CMBS:
BAMLL 2014-FL1 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).

BondsFinancemortgage loanCMBS
Contact:

Kroll Bond Rating Agency

Aleksandra Simanovsky, 646-731-2434

asimanovsky@kbra.com

or

Robin Regan, 646-731-2358

rregan@kbra.com

or

Michael Brown, 646-731-2307

mbbrown@kbra.com

or

John Grosso, CFA, 646-731-2401

jgrosso@kbra.com

Continued here:
Kroll Bond Rating Agency Assigns Preliminary Ratings to BAMLL 2014-FL1

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