KBRA awards preliminary ratings to BBCMS 2022-C14

NEW YORK–(BUSINESS WIRE)–KBRA is pleased to announce the assignment of preliminary ratings to 18 classes of BBCMS 2022-C14, a $926.8 million CMBS conduit transaction secured by 56 commercial mortgage loans secured by 83 properties.

Collateral properties are located in 46 MSAs, the three largest of which are New York (13.4%), Washington – NoVA – MD (10.3%) and Los Angeles (8.4%). The transaction in question has exposure to all major property type segments, with the top three being office (36.8%), industrial (16.3%) and multi-family (14.9%). The loans have principal balances ranging from $3.1 million to $70.0 million for the largest loan in the pool, Coleman Highline Phase IV (7.6%), a 657,934 Class A office complex square feet located in San Jose, California, about five miles northwest of the city’s CBD. The five largest loans also include 1888 Century Park East (7.6%), 1100 & 820 First Street NE (6.5%), Chicago Crossed Portfolio (5.8%) and The Summit (5.4%) and represent 32.8% of the initial loan. pool balance, while the top 10 loans account for 51.4%.

KBRA’s analysis of the transaction incorporated our multi-borrower rating process which begins with our analysts’ assessment of the financial and operational performance of the underlying collateral properties, which determines KBRA’s estimate of cash flow net durable (KNCF) and value of KBRA using our US CMBS property. Evaluation methodology. On an aggregate basis, KNCF was 9.4% lower than the issuer’s cash flow. KBRA capitalization rates were applied to the KNCF of each asset to arrive at values ​​that were, on an aggregate basis, 43.1% lower than third party appraisal values. The pool has an in-trust KLTV of 99.1% and an all-in KLTV of 106.9%. The model deploys rent and occupancy constraints, probability of default regressions and loss given default calculations to determine losses for each secured loan which are then used to assign our credit ratings.

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Disclosures

Further information on key credit considerations, sensitivity analyzes which look at factors that may affect these credit ratings and how they could lead to an upgrade or downgrade, and ESG factors (where they are a driver key to the change in credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially significant sources that were used to prepare the credit rating and information on the methodology(ies) (including all significant models and sensitivity analyzes of the main relevant rating assumptions, the where applicable) used to determine credit rating are available in the information disclosure form(s) located here.

Information on the meaning of each rating category can be found here.

Additional information relating to this rating metric is available in the information disclosure form(s) referenced above. Additional information regarding KBRA’s policies, methodologies, grading scales and disclosures is available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a rating agency with the UK Financial Conduct Authority under the temporary registration scheme. In addition, KBRA is designated as the Designated Rating Agency 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.

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