Kroll Bond Rating Agency Assigns Preliminary Ratings to BAMLL 2012-PARK

NEW YORK--()--Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings for the BAMLL 2012-PARK transaction (see ratings list below). BAMLL 2012-PARK is a $300.0 million CMBS single borrower transaction.

The collateral for the securitization is comprised of a single, non-recourse, first lien mortgage loan. The loan is secured by the borrowers’ fee simple interest in a 1.25 million sf office property at 101 Park Avenue, New York, NY. The property is a 48-story, Class A, office building located two blocks south of Grand Central Terminal. The property consists of 1.14 million sf of office space and 105,581 sf of retail, storage and garage space. 52% of the building’s total sf is occupied by tenants who have had a presence at the building since it was constructed in 1982. Additionally, the property’s average lease rate for the office space over the past decade is 99.3%.

KBRA’s analysis of the transaction included a detailed evaluation of the properties’ cash flow using our CMBS Property Evaluation Guidelines, and the application of our CMBS Single Borrower & Large Loan Rating Methodology. The results of our analysis yielded a KBRA Net Cash flow (KNCF) of $47.9 million and a KBRA value of $617.7 million. Our resulting KBRA Loan to Value (KLTV) was 48.6% and the KBRA Debt Service Coverage during the term (KDSCt) was 4.50x. In our analysis of the transaction, we also reviewed and considered third party engineering, environmental and appraisal reports, our own on-site inspection of the property and the competition and legal documentation and opinions.

For complete details on the analysis, please see our presale Report, BAMLL 2012-PARK, 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: BAMLL 2012-PARK

Class         Expected Rating           Balance (US$)
A         AAA (sf)           $300,000,000
X         AAA (sf)           $300,000,000
* Notional Amount
 

17g-7 Disclosure

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: BAMLL 2012-PARK 17g-7 Disclosure Report

Related publications (available at www.krollbondratings.com):
CMBS Single Borrower and Large Loan Rating Methodology
CMBS Property Evaluation Guidelines, published June 10, 2011

About Kroll Bond Rating Agency

Kroll Bond Rating Agency, Inc. (www.krollbondratings.com) is registered with the SEC as a nationally recognized statistical rating organization (NRSRO). Kroll Bond Rating Agency was established in 2010 to restore trust in credit ratings by establishing new standards for assessing risk and by offering accurate, clear, and transparent ratings.

Contacts

Analytical:
Kroll Bond Rating Agency
Yee Cent Wong, 646-731-2374
ywong@krollbondratings.com
or
Keith Kockenmeister, 646-731-2349
kkockenmeister@krollbondratings.com

Sharing

Contacts

Analytical:
Kroll Bond Rating Agency
Yee Cent Wong, 646-731-2374
ywong@krollbondratings.com
or
Keith Kockenmeister, 646-731-2349
kkockenmeister@krollbondratings.com