Morningstar Credit Ratings Assigns Preliminary Ratings for COMM 2014-KYO Mortgage Trust, Commercial Mortgage Pass-Through Certificates (COMM 2014-KYO) - wistv.com - Columbia, South Carolina |

Morningstar Credit Ratings Assigns Preliminary Ratings for COMM 2014-KYO Mortgage Trust, Commercial Mortgage Pass-Through Certificates (COMM 2014-KYO)

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SOURCE Morningstar, Inc.

NEW YORK, June 16, 2014 /PRNewswire/ -- Morningstar Credit Ratings, LLC today assigned preliminary ratings for the commercial mortgage-backed securities (CMBS) transaction COMM 2014-KYO Mortgage Trust, Commercial Mortgage Pass-Through Certificates (COMM 2014-KYO). The preliminary ratings are based on information known to Morningstar as of June 16, 2014.

PRELIMINARY RATINGS (AS OF JUNE 16, 2014)


Balance/        Notional Amt.

Preliminary Ratings

Morningstar DSCR

Morningstar BLTV

Morningstar ELTV

Credit Support Levels

Class

Class A

$550,944,000

AAA

5.17x

27.95%

27.11%

60.650%

Class X-CP

$325,770,000

AAA

N/A

N/A

N/A

N/A

Class X-EXT

$325,770,000

AAA

N/A

N/A

N/A

N/A

Class B

$191,558,000

AA

3.84x

37.67%

36.54%

46.960%

Class C

$142,397,000

A

3.22x

44.89%

43.54%

36.790%

Class D

$89,846,000

BBB+

2.92x

49.45%

47.96%

30.380%

Class E

$98,322,000

BBB-

2.65x

54.44%

52.80%

23.350%

Class F

$286,394,000

BB-

2.10x

68.97%

66.89%

2.900%

Class G

$40,539,000

B+

2.03x

71.02%

68.89%

0.000%

The key characteristics of the mortgage loan collateral supporting COMM 2014-KYO are:

  • A single floating-rate mortgage loan with an initial term of two years and subject to three one-year extension options. The mortgage loan is secured by the borrower's fee simple and leasehold interests in five full-service hotels in Hawaii and California;
  • The principal balance of the mortgage loan, which is collateral for the trust, is $1.4 billion; and
  • The transaction includes subordinate debt in the form of two mezzanine loans in the aggregate amount of $475.0 million.

Based on information provided on the arranger's website, Morningstar's analysis of the loan yielded the following Morningstar metrics:

  • An aggregate Morningstar net cash flow (NCF) of $160.4 million, which is lower than the arranger's NCF by 4.00 percent;
  • A current debt service coverage ratio (DSCR) of 5.64x based on the loan spread and current one-month LIBOR. Based on the stressed interest rate of 5.63 percent, the Morningstar DSCR is 2.03x;
  • Morningstar valued the properties at $2.0 billion using a weighted-average capitalization rate of 7.83 percent; and
  • The Morningstar term value, which equates to $491,000 per room, is 28.50 percent lower than the appraised value of $2.8 billion. The Morningstar term value resulted in a weighted-average beginning loan-to-value (LTV) ratio of 71.00 percent.

For complete details about the preliminary ratings for this transaction, Morningstar's Presale Analysis Package, including the Presale Report and the Representations, Warranties, and Enforcement Mechanisms, is available under the "Ratings Reports" tab on https://ratingagency.morningstar.com. Information subsequently received could result in the assignment of final ratings that differ from the preliminary ratings.

About Morningstar Credit Ratings, LLC and Morningstar, Inc.

Morningstar Credit Ratings, LLC is a Nationally Recognized Statistical Rating Organization (NRSRO) that specializes in structured credit research and ratings, and offers a wide array of services including new-issue ratings and analysis, operational risk assessments, surveillance services, data, and technology solutions.

Morningstar Credit Ratings, LLC is a subsidiary of Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research in North America, Europe, Australia, and Asia.

Morningstar, Inc. offers an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. Morningstar provides data on approximately 456,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 12 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its registered investment advisor subsidiaries and had approximately $164 billion in assets under advisement and management as of March 31, 2014. The company has operations in 27 countries.

Morningstar, Inc. is not an NRSRO and its credit ratings on corporate and municipal issuers are not NRSRO credit ratings.

©2014 Morningstar, Inc. All Rights Reserved.

MORN-R

Media Contact:  
Michelle Weiss, +1 267-960-6014 or michelle.weiss@morningstar.com

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