KBRA Assigns Preliminary Ratings to Benchmark 2020-B16
NEW YORK--(BUSINESS WIRE)--Jan 21, 2020--
Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings to 18 classes of Benchmark 2020-B16 (see ratings list below), a $899.1 million CMBS conduit transaction with 33 loans secured by 77 properties.
The collateral properties are located in 18 states, with the top three states represented by New York (37.0%), Illinois (13.6%), and California (9.5%). The pool has exposure to all of the major property types, with the top three being retail (28.0%), office (26.5%), and lodging (11.9%). The loans have principal balances ranging from $3.7 million to $65.0 million for the largest loan in the pool, Harrison Retail (7.2%), which is secured by an 88,254 sf retail and garage condominium located in the Upper West Side neighborhood of New York City’s borough of Manhattan. The five largest loans, which also include Bellagio Hotel and Casino (6.7%), Kings Plaza (5.6%), 3500 Lacey (5.6%) and FedEx Redmond (5.0%), represent 30.0% of the initial pool balance, while the top 10 loans represent 54.8%.
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 U.S. CMBS Property Evaluation Methodology. On an aggregate basis, KNCF was 8.4% 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, 42.0% less than third party appraisal values. The pool has an in-trust KLTV of 90.3% and an all-in KLTV of 105.6%. 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: Benchmark 2020-B16
Initial Class Balance
Expected KBRA Rating
$0 - $266,000,000 1
$266,560,000 -$532,560,000 1
1 The exact initial certificate balances will not be determined until final pricing; however, they are expected to fall within the above ranges. 2 Notional balance.
For complete details on the analysis, please see our pre-sale report published at www.kbra.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 ratings that differ from the preliminary ratings.
To access ratings, reports and disclosures, click here.
Related Publications: (available at www.kbra.com )
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. KBRA is also 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.
View source version on businesswire.com:https://www.businesswire.com/news/home/20200121005787/en/
CONTACT: Analytical Contacts:
John Triantafyllou, Director
Yee Cent Wong, Senior Managing Director
Patrick McQuinn, Director
Dayna Carley, Senior Director
Business Development Contact:
Michele Patterson, Managing Director
KEYWORD: UNITED STATES NORTH AMERICA NEW YORK
INDUSTRY KEYWORD: BANKING PROFESSIONAL SERVICES FINANCE
SOURCE: Kroll Bond Rating Agency
Copyright Business Wire 2020.
PUB: 01/21/2020 11:03 AM/DISC: 01/21/2020 11:03 AM