Kroll Bond Rating Agency Affirms MSC 2013-ALTM

NEW YORK--()--Kroll Bond Rating Agency (KBRA) affirmed its ratings on all classes of MSC 2013-ALTM certificates, a $160.0 million CMBS single borrower transaction (see ratings below). The transaction collateral consists of a single, non-recourse, first lien mortgage loan secured by the borrower’s fee simple interest in 636,566 square feet (sf) of Altamonte Mall, a 1.2 million sf super-regional mall located in Altamonte Springs, California. The mall is anchored by Dillard’s, JCPenney, Macy’s and Sears. JCPenney serves as collateral, and the remaining three anchors own their own improvements and underlying land. The loan’s sponsors are General Growth Properties and the New York State Common Retirement Fund.

The collateral was 96.9% occupied as of December 2013. For the TTM period ending September 2013, comparable in-line tenants occupying less than 10,000 sf generated sales of $600 per sf, up 1.7% from $590 per sf at securitization. The current sales performance is 31.0% higher than the International Council of Shopping Centers (ICSC) national average in-line sales for malls, which were $458 per sf as of December 2013. The current sales performance is also 33.9% higher than the US South Region average sales for the same period. Excluding the Apple Store, average in-line tenant sales were $459 per sf, which represents a 2.5% increase since securitization ($448 per sf).

KBRA used information obtained from the trustee, U.S. Bank National Association, and servicer, Berkadia Commercial Mortgage LLC, to analyze the loan collateral. The analysis produced a KBRA Net Cash Flow (KNCF) of $15.3 million and a KBRA value of $197.2 million, both of which have declined 0.3% since securitization. The resulting in-trust KBRA Loan to Value (KLTV) is 81.1%.

                   
Class     Rating     Balance (USD)     Rating Action
A     AAA (sf)     22,500,000     Affirmed
X-2     AAA (sf)     74,400,000     Affirmed
X-A¹     AAA (sf)     96,900,000     Affirmed
B     AA- (sf)     21,000,000     Affirmed
C     A- (sf)     15,700,000     Affirmed
D     BBB- (sf)     19,300,000     Affirmed
E     BB+ (sf)     7,100,000     Affirmed

¹ Notional Class

 

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 at http://www.krollbondratings.com/regulatory/17g-7.

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About Kroll Bond Rating Agency:

KBRA was established in 2010 by Jules Kroll to restore trust in credit ratings by creating new standards for assessing risk and by offering accurate, clear and transparent ratings. KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

Contacts

Kroll Bond Rating Agency
Gretel Braverman, 215-882-5843
gbraverman@kbra.com
or
Sarah Woo, 646-731-2361
swoo@kbra.com
or
Michael Haas, 215-882-5859
mhaas@kbra.com
or
Troy Doll, 646-731-2336
tdoll@kbra.com

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Contacts

Kroll Bond Rating Agency
Gretel Braverman, 215-882-5843
gbraverman@kbra.com
or
Sarah Woo, 646-731-2361
swoo@kbra.com
or
Michael Haas, 215-882-5859
mhaas@kbra.com
or
Troy Doll, 646-731-2336
tdoll@kbra.com