NEW YORK--(EON: Enhanced Online News)--Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings to 14 classes of the COMM 2013-CCRE12 transaction (see ratings listed below). COMM 2013-CCRE12 is a $1.2 billion CMBS conduit transaction collateralized by 63 fixed-rate commercial mortgage loans that are secured by 124 properties.
The loans have principal balances ranging from $3.0 million to $150.0 million for the largest loan in the pool. Three loan sellers, German American Capital Corporation (43.2%), Cantor Commercial Real Estate, L.P. (41.1%) and UBS Real Estate Securities Inc. (15.7%) contributed the loans. The largest loan in the pool, 175 West Jackson (12.5%), is secured by a 1.5 million sf, Class-A office tower located in Chicago, Illinois. The five largest loans, which also include Miracle Mile Shops (12.1%), Westlakes (5.7%), Oglethorpe Mall (5.0%), and 9 Northeastern Boulevard (4.5%), represent 39.9% of the initial pool balance, while the top 10 loans represent 56.5%. The collateral properties are located in 31 different states, the District of Columbia, and the US Virgin Islands, with two state exposures that each account for more than 10.0% of the pool balance: Illinois (14.7%), and Nevada (12.4%). The pool three property type exposures that each represent more than 10.0% of the pool balance: retail (31.3%), office (27.0%), and multifamily (18.7%).
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 5.2% 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, 32.6% less than third party appraisal values. The pool has an in-trust KLTV of 100.5% and an all-in KLTV of 101.7%. 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-CCRE12, 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.
Preliminary Ratings Assigned: COMM 2013-CCRE12
|1 Notional balance equal to the aggregate outstanding balance of the Class A-1, A-2, A-3, A-4, A-SB and A-M certificates.|
|2 Notional balance equal to the aggregate outstanding balance of the Class B, C, and D certificates.|
|3 Notional balance equal to the aggregate outstanding balance of the Class E, F, and G certificates.|
|4 Class PEZ balance represents the maximum amount of Class PEZ certificates that could be issued in an exchange, as described in the presale report.|
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-CCRE12 17g-7 Disclosure Report.