Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings to five classes of GSMS 2014-GSFL, a $542.8 million large loan floating rate CMBS transaction (see ratings listed below).
The collateral for the transaction consists of eight first-lien mortgage loans secured by a total of 59 properties. The loans have principal balances ranging from $35.0 million to $131.8 million for the largest loan in the pool, which is secured by the JW Marriott (24.3% of trust), a 610-key, full service hotel located in the Chicago CBD. Seven loans in the pool are secured by the borrowers' fee simple interests in the related properties, while the remaining loan is secured by the fee simple and lease hold interests in a portfolio of 44 Rite Aid properties. The mortgaged properties are located in 17 states.
KBRA’s analysis of the transaction involved a detailed evaluation of the underlying cash flows using our CMBS Property Evaluation Guidelines and the application of our CMBS Single-Borrower & Large Loan Rating Methodology. The results of the analysis yielded KNCF for the underlying collateral properties that was, on average, 4.7% less than issuer cash flow. KBRA applied our stressed capitalization rates to KNCF to arrive at valuations of the underlying properties. The KBRA values were, on average, 40.1% less than the appraiser’s as-is valuation. The resulting KBRA in-trust Loan to Value (KLTV) was 85.0%, and the all-in KLTV was 147.6%. As part of our analysis of the transaction, we also reviewed and considered third party engineering and environmental reports, our analysts’ site visits of the collateral properties, and the transaction structure.
Preliminary Ratings Assigned: GSMS 2014-GSFL
| Class | Balance |
Credit | Rating | |||||||||
| A | $276,138,000 | 49.12% | AAA(sf) | |||||||||
| X-CP(1) | $542,769,616 | N/A | AAA(sf) | |||||||||
| B | $67,847,000 | 36.62% | AA-(sf) | |||||||||
| C | $48,147,000 | 27.75% | A-(sf) | |||||||||
| D | $64,480,000 | N/A | NR | |||||||||
| E | $86,157,616 | N/A | NR | |||||||||
| X-JWM | $131,800,000 | N/A | NR | |||||||||
| X-RAP | $99,369,616 | N/A | NR | |||||||||
| X-BFP | $42,500,000 | N/A | NR | |||||||||
| X-ATP | $41,200,000 | N/A | NR | |||||||||
| X-CIP | $35,600,000 | N/A | NR | |||||||||
| X-SLS | $35,000,000 | N/A | NR | |||||||||
| X-EXT(1) | $542,769,616 | N/A | AAA(sf) |
1 Notional amount.
Related publications (available at www.krollbondratings.com):
CMBS: GSMS 2014-GSFL Pre-Sale Report
CMBS: Single Borrower & Large Loan Rating Methodology, published August 8, 2011
CMBS Property Evaluation Guidelines, published June 10, 2011
About Kroll Bond Rating Agency
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:
Analytical
Contacts:
Michael B. Brown
(646) 731-2307
mbbrown@kbra.com
or
Michael
McGorty
(646) 731-2393
mmcgorty@kbra.com
or
Robin
Regan
(646) 731-2358
rregan@kbra.com
