KBRA Assigns Preliminary Ratings to RCMT 2019-5
NEW YORK--(BUSINESS WIRE)--Jan 22, 2019--Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings to nine classes of RCMT 2019-5 (see ratings list below), a $399.2 million CMBS small balance transaction collateralized by 95 commercial mortgage loans secured by 127 properties.
The collateral properties are located in 28 states, with two state exposures each representing more than 10.0% of the pool balance: California (12.9%) and Texas (10.9%). The pool has exposure to most of the major property types, with three each representing 15.0% or more of the pool balance: multifamily (30.1%), office (29.5%), and retail (25.1%). The loans have principal balances ranging from $676,952 to $31.5 million for the largest loan in the pool, Hirschfield Portfolio I (7.9%), which is secured by 17 single-tenant office and retail properties that together comprise 171,543 sf. The five largest loans, which also include Bungalows on Olive (4.9%), UCONN Health Center Finance Corporation (2.5%), Silver Hills Apartments (2.3%), and Hirschfield Portfolio II (2.3%), represent 19.9% of the initial pool balance, while the top 10 loans represent 30.7%.
KBRA’s analysis of the transaction incorporated our multi-borrower rating process that begins with our analysts’ evaluation of the underlying collateral properties’ financial and operating performance, which determine KBRA’s estimate of sustainable net cash flow (KNCF) and KBRA value using our . On an aggregate basis, KNCF was 12.0% 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, 43.3% less than third party appraisal values. The pool has an in-trust KLTV of 103.0% and an all-in KLTV of 104.6%. The model deploys rent and occupancy stresses, probability of default regressions, and loss given default calculations to determine losses for each collateral loan that are then used to assign our credit ratings.
Preliminary Ratings Assigned: RCMT 2019-5
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About KBRA and KBRA Europe
KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus, is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
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John Triantafyllou, Associate Director
firstname.lastname@example.orgMichael Brown, Senior Director
email@example.comSusannah Keagle, Senior Director
firstname.lastname@example.orgAkshay Maheshwari, Associate Director
KEYWORD: UNITED STATES NORTH AMERICA NEW YORK
INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE INSURANCE
SOURCE: Kroll Bond Rating Agency
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PUB: 01/22/2019 04:48 PM/DISC: 01/22/2019 04:47 PM