Kroll Bond Rating Agency Affirms Ratings on RBS 2013-SMV
NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) affirmed its ratings on all classes of RBS 2013-SMV certificates, a $295.0 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 737,554 square feet (sf) of The Shops at Mission Viejo, a 1.2 million sf super-regional mall located in Mission Viejo, California. The mall is anchored by Forever 21, Nordstrom, Macy’s Men’s, Children & Furniture Gallery and Macy’s Women’s & Home. Forever 21 and Nordstrom serve as collateral, and the remaining two anchors own their own improvements and underlying land. The loan’s sponsor is Simon Property Group, L.P., an affiliate of Simon Property Group, Inc.
The collateral was 94.9% occupied as of September 2013. For the TTM period ending November 2013, comparable in-line tenants occupying less than 10,000 sf generated sales of $596 per sf, up 2.2% from $583 per sf at securitization. The current sales performance is 24.4% higher than the International Council of Shopping Centers (ICSC) national average in-line sales for malls, which were $479 per sf as of November 2013. The current sales performance is equal to the US West Region average sales for the same period. Excluding the Apple Store, average in-line tenant sales were $490 per sf, which represents a 4.0% increase since securitization ($471 per sf).
KBRA used information obtained from the trustee, U.S. Bank National Association, and servicer, Wells Fargo Bank, N.A., to analyze the loan collateral. The analysis produced a KBRA Net Cash Flow (KNCF) of $27.6 million and a KBRA value of $368.5 million, both of which have declined 0.5% since securitization. The resulting in-trust KBRA Loan to Value (KLTV) is 80.1%.
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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.
Related Publications: (available at https://www.krollbondratings.com):
- RBS 2013-SMV Pre-Sale ReportCMBS Property Evaluation Guidelines
- CMBS Single Borrower and Large Loan Rating Methodology
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).