NEW YORK--(EON: Enhanced Online News)--Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings to the GSMS 2013-GCJ16 transaction (see ratings listed below). GSMS 2013-GCJ16 is a $1.1 billion CMBS conduit transaction collateralized by 78 fixed-rate commercial mortgage loans that are secured by 134 commercial properties.
The loans have principal balances ranging from $2.4 million to $72.9 million for the largest loan, which is secured by Windsor Court New Orleans (6.4% of the initial pool balance), a 316-key, full-service luxury hotel located in New Orleans, Louisiana. The five largest loans, which also include Miracle Mile Shops (6.2%), Matrix MHC Portfolio (6.1%), The Gates at Manhasset (5.3%) and Perkins Retail Portfolio (4.2%), represent 28.2% of the initial pool balance, while the ten largest loans represent 45.6%.The collateral properties are located in 28 different states, with two state exposures that each account for more than 10.0% of the pool balance: Nevada (12.0%), and California (11.5%). The pool has exposure to two property types that each represent more than 15.0% of the pool balance: retail (37.9%), and multifamily (20.6%). The majority of the loans (53 loans, 74.8% of the pool balance) were used to refinance existing debt, while the proceeds from 24 loans (23.3%) were used for property acquisitions. With respect to one loan (2.0%), the related loan proceeds were used for both acquisition and refinance purposes.
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 5.0% 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, 31.3% less than third party appraisal values. The pool has an in-trust KLTV of 97.9% 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, GSMS 2013-GCJ16, 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: GSMS 2013-GCJ16
1 Notional balance equal to the aggregate outstanding balance
of the Class A-1, A-2, A-3, A-4, A-AB and A-S certificates.
2 Notional balance equal to the aggregate outstanding balance of the Class B and C certificates.
3 Notional balance equal to the aggregate outstanding balance of the Class F, G and H 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 GSMS 2013-GCJ16 17g-7 Disclosure Report.