NEW YORK--(COMM 2013-CCRE6 transaction (see ratings list below). COMM 2013-CCRE6 is a $1.49 billion CMBS conduit transaction collateralized by 48 fixed rate commercial mortgage loans that are secured by 80 properties.)--Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings for the
The loans have principal balances ranging from $2.6 million to $130.0 million for the largest loan in the pool, which is secured by Federal Center Plaza (8.7%), a 725,317 million sf office building located in Washington, D.C. The top five loans, which also include Moffett Towers (8.0%), The Avenues (7.4%), Rochester Hotel Portfolio (7.4%) and 540 West Madison Street (6.7%), represent 38.1% of the initial pool balance, and the top ten loans represent 65.1%.
The underlying collateral properties are geographically diverse as they are located in 25 states and the District of Columbia. With the exception of California (25.2%) and the District of Columbia (17.0%), no other geographic concentration exceeds 10.0% of the pool. The pool has exposure to three property types with concentrations in excess of 10%: office (31.7%), hospitality (25.9%), and retail (24.6%).
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. KNCF was on an aggregate basis was 3.2% less than the issuer cash flow. KBRA capitalization rates were applied to each asset’s KNCF to derive individual property values that, on an aggregate basis, were 34.3% lower than third party appraisal values. The weighted average capitalization rate for the transaction was 9.5%. The pool has an in-trust KLTV of 89.4% and an all-in KLTV of 95.1%.
The KBRA credit model deploys rent and occupancy stresses, probability of default regressions, and loss given default calculations to determine losses for each collateral loan, which are then used to assign our credit ratings.
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-CCRE6
1 Notional balance.
2 Class RP is a loan-specific certificate and only entitled to amounts from the junior component of the Rochester Hotel Portfolio loan.
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-CCRE6 17g-7 Disclosure Report.
Related publications (available at www.krollbondratings.com):
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