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KBRA Assigns Preliminary Ratings to JPMCC 2019-COR4Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings to 17 classes of JPMCC 2019-COR4 (see ratings list below), a $774.1 million CMBS conduit transaction collateralized by 38 commercial mortgage loans secured by 56 properties. The collateral properties are located in 18 states, with two state exposures, California (34.7%) and Washington (19.5%), representing more than 10.0% of the pool balance. The pool has exposure to all of the major property types, with four each representing 10.0% or more of the pool balance: retail (26.0%), office (25.8%), lodging (18.7%), and industrial (10.4%). The loans have principal balances ranging from $4.0 million to $77.0 million for the largest loan in the pool, Renaissance Seattle (9.9%), which is secured by a 557-key full-service hotel located in Seattle, Washington, within the city's CBD. The five largest loans, which also include 400 South El Camino (9.7%), Liberty Station Retail (8.7%), Bedford Square (6.2%), and Saint Louis Galleria (6.0%), represent 40.5% of the initial pool balance, while the top 10 loans represent 57.7%. KBRA's analysis of the transaction incorporated our multi-borrower rating process that begins with our analysts' evaluation of the underlying collateral properties' financial and operating performance, which determine KBRA's estimate of sustainable net cash flow (KNCF) and KBRA value using our CMBS Property Evaluation Methodology. On an aggregate basis, KNCF was 4.4% less than the issuer cash flow. KBRA capitalization rates were applied to each asset's KNCF to derive values that were, on an aggregate basis, 41.6% less than third party appraisal values. The pool has an in-trust KLTV of 102.2% and an all-in KLTV of 108.3%. The model deploys rent and occupancy stresses, probability of default regressions, and loss given default calculations to determine losses for each collateral loan that are then used to assign our credit ratings. For complete details on the analysis, please see our pre-sale report, JPMCC 2019-COR4 published at www.kbra.com. The report includes our JPMCC 2019-COR4 KBRA Conduit KCAT, an easy to use, Excel-based workbook that provides the following information:
To access ratings, reports and disclosures, click here. Related Publications: (available at www.kbra.com)
Twitter 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, is 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20190211005518/en/ |