NEW YORK--(EON: Enhanced Online News)--Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of final ratings to the JPMBB 2013-C15 transaction (see ratings listed below). JPMBB 2013-C15 is a $1.19 billion CMBS conduit transaction collateralized by 68 fixed-rate commercial mortgage loans that are secured by 151 properties.
The loans were contributed by four sellers: JPMorgan Chase Bank (16 loans, 50.9%), Barclays Bank PLC (28 loans, 21.5%), Starwood Mortgage Funding II LLC (16 loans, 16.7%), and KeyBank National Association (eight loans, 10.8%). The loans have principal balances ranging from $2.0 million to $119.0 million for the largest loan in the pool, which is secured by Veritas Multifamily Portfolio (10.0%). The Veritas Multifamily Portfolio consists of 1,230 residential units in 45 mid-rise multifamily complexes located throughout San Francisco, California. The five largest loans also include Miracle Mile Shops (9.2%), 1615 L Street (8.4%), Hulen Mall (7.5%) and Briarcliff Office Portfolio (4.8%) and represent 39.9% of the initial pool balance, while the ten largest loans represent 55.8%. 63 loans (93.2%) are secured by the borrowers' fee simple interests, two loans (3.5%) are secured by the borrowers’ fee simple and leasehold interests, and three loans (3.3%) are secured by the borrowers’ leasehold interests in the related properties. The mortgaged properties are located in 31 states and the District of Columbia. Two state concentrations each represent in excess of 15.0% of the pool balance: Texas (17.3%) and California (15.4%). There is also exposure to three property types with concentrations in excess of 15.0%: Retail (28.8%), Office (28.2%) and Multifamily (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 3.4% 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, 31.8% less than third party appraisal values. The pool has an in-trust KLTV of 96.0% and an all-in KLTV of 108.8%; however, the all-in KLTV is skewed by preferred equity that has debt like characteristics and which is associated with the Veritas Multifamily Portfolio loan. Excluding the preferred equity, the pool all-in cutoff KLTV would be 100.5%. 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.
Final Ratings Assigned: JPMBB 2013-C15
|1 Notional balance equal to the aggregate outstanding balance of the Class A-1, A-2, A-3, A-4, A-5, A-SB and A-S certificates and the A-2FX/FX regular interest.|
|2 Notional balance equal to the outstanding balance of the Class B certificates.|
|3 Notional balance equal to the aggregate outstanding balance of the Class E, F, and NR certificates.|
Related publications (available at www.krollbondratings.com):
CMBS: JPMBB 2013-C15 Presale Report
CMBS: U.S. CMBS Multi-Borrower Rating Methodology, published February 23, 2012
CMBS Property Evaluation Guidelines, published June 10, 2011