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KBRA Assigns Preliminary Ratings to Citigroup Commercial Mortgage Trust 2020-WSS

Kroll Bond Rating Agency (KBRA) announces the assignment of preliminary ratings to eight classes of Citigroup Commercial Mortgage Trust 2020-WSS, a $413.25 million CMBS single-borrower transaction.

The collateral for the securitization consists of a $435.0 million non-recourse, first lien, floating-rate mortgage loan that is secured by the borrowers’ fee simple interests in 74 hotels totaling 8,876 keys. For the TTM 11/2019 period, the portfolio’s occupancy was 81.3% with an average daily rate (ADR) of $46.14, resulting in revenue per available room (RevPAR) of $37.51. The underlying collateral consists of 74 economy extended-stay properties operating under the WoodSpring Suites flag located in 26 states.

KBRA’s analysis of the transaction included a detailed evaluation of the properties’ cash flows using our U.S. CMBS Property Evaluation Methodology, and the application of our U.S. CMBS Single Borrower and Large Loan Rating Methodology. In addition, KBRA also relied on its Global Structured Finance Counterparty Methodology for assessing counterparty risk in this transaction, to the extent deemed applicable. The results of our analysis yielded a KBRA net cash flow (KNCF) for the portfolio of roundly $47.6 million. To value the portfolio, KBRA applied a blended capitalization rate of 12.04% to arrive at a KBRA value of $395.8 million. The resulting KBRA Loan-to-Value (KLTV) is 109.9%. In our analysis of the transaction, we considered the third-party engineering, environmental, seismic, and appraisal reports; management and franchise agreements; the results of our site inspections; and legal documentation.

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.

For further details on KBRA’s analysis, please see our pre-sale report published at www.kbra.com. To access ratings, reports and disclosures, click here.

Preliminary Ratings Assigned: Citigroup Commercial Mortgage Trust 2020-WSS

Class

Initial Class Balance

Expected
KBRA Rating

A

$148,646,000

AAA (sf)

X-CP

$112,697,6001

AAA (sf)

X-NCP

$140,872,0001

AAA (sf)

B

$51,684,000

AA- (sf)

C

$38,419,000

A- (sf)

D

$50,769,000

BBB- (sf)

E

$74,879,000

BB- (sf)

F

$48,853,000

B- (sf)

1Notional balance.

Related Publications: (available at www.kbra.com)

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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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