KBRA Assigns Preliminary Ratings to BANK 2019-BNK23
NEW YORK--(BUSINESS WIRE)--Nov 18, 2019--
Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings to 16 classes of BANK 2019-BNK23 (see ratings list below), a $1.3 billion CMBS conduit transaction collateralized by 47 commercial mortgage loans secured by 100 properties.
The collateral properties are located in 25 states, with the top three states represented by California (41.7%), New York (12.8%), and Georgia (4.7%). The pool has exposure to all the major property types, with the top three being office (35.6%), multifamily (25.4%), and retail (20.6%). The loans have principal balances ranging from $3.0 million to $105.0 million for the largest loan in the pool, Century Plaza Tower (8.2%), which is secured by a 2.4 million sf, Class-A, LEED Gold certified office complex located in the Century City neighborhood of Los Angeles, approximately 10 miles west of the city’s CBD. The five largest loans, which also include Jackson Park (7.8%), Park Tower at Transbay (7.8%), ILPT Industrial Portfolio (5.8%), and 360 North Crescent Drive (5.7%), represent 35.2% of the initial pool balance, while the top 10 loans represent 57.3%.
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 6.6% 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, 40.1% less than third party appraisal values. The pool has an in-trust KLTV of 94.0% and an all-in KLTV of 102.6%. 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: BANK 2019-BNK23
Initial Class Balance
Expected KBRA Rating
$200,000,000 - $375,000,000¹
$439,369,000 - $614,369,000¹
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 )
- BANK 2019-BNK3 Pre-Sale Report
- BANK 2019-BNK3 KBRA Conduit KCAT
- U.S. CMBS Multi-Borrower Rating Methodology
- U.S. CMBS Property Evaluation Methodology
- Methodology for Rating Interest-Only Certificates in CMBS Transactions
- Global Structured Finance Counterparty Methodology
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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.
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CONTACT: Analytical Contacts:
Erika Hinman, Director
email@example.comYee Cent Wong, Senior Managing Director
firstname.lastname@example.orgChristina Chou, Associate
email@example.comDayna Carley, Senior Director
firstname.lastname@example.orgBusiness Development Contact:
Michele Patterson, Managing Director
KEYWORD: NEW YORK UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: BANKING PROFESSIONAL SERVICES INSURANCE FINANCE
SOURCE: Kroll Bond Rating Agency
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