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Kroll Bond Rating Agency Assigns Preliminary Ratings to JPMCC 2014-FL5NEW YORK --(Business Wire)-- Kroll Bond Rating Agency, Inc. (KBRA) is pleased to announce the assignment of preliminary ratings to 21 classes of JPMCC 2014-FL5, a $671.3 million large loan floating rate CMBS transaction (see ratings listed below). The collateral for the transaction consists of ten first-lien mortgage loans, with eight loans (92.4%) secured by hospitality properties and the remaining loans (7.6%) secured by office properties. Nine (96.9%) of the ten loans have been participated into a pooled component and a non-pooled component, which total $516.7 million and $154.6 million, respectively. Each non-pooled loan component serves as the sole source of cash flow for a loan-specific class of certificates. 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, 3.1% 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, 41.7% less than the appraiser's as-is valuation. The resulting KBRA in-trust Loan to Value (KLTV) was 78.8%. Six loans (52.0%) have additional financing in the form of mezzanine debt and three loans (27.1%) have subordinate B-notes in place. The weighted average all-in KLTV for the loans was 111.3%. 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. For complete details on the analysis, please see our presale report, JPMCC 2014-FL5 published today 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 final ratings that differ from the preliminary ratings. Preliminary Ratings Assigned: JPMCC 2014-FL5
1 Notional amount. 2 Represents a loan-specific class of certificates and is only entitled to distributions from a non-pooled interest in the related mortgage loan. Related publications (available at www.kbra.com): CMBS: JPMCC 2014-FL5 Presale 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).
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