Kroll Bond Rating Agency Assigns Preliminary Ratings to JPMBB 2015-C27
30 January 2015 - 6:37PM
Business Wire
Kroll Bond Rating Agency, Inc. (KBRA) is pleased to announce the
assignment of preliminary ratings to 20 classes of the JPMBB
2015-C27 transaction (see ratings list below). JPMBB 2015-C27 is an
$836.5 million CMBS conduit transaction collateralized by 44 fixed
rate commercial mortgage loans that are secured by 91
properties.
The underlying collateral properties are located in 26 states
and the District of Columbia, with three states representing more
than 10.0% of the pool balance: New York (23.4%), Michigan (13.2%)
and California (12.4%). The pool has exposure to all the major
property types, with four that represent more than 10.0% of the
pool balance: office (39.7%), lodging (21.5%), mixed-use (12.0%)
and retail (10.6%). The loans have principal balances ranging from
$3.5 million to $110.0 million for the largest loan in the pool,
The Club Row Building (13.1%), a 365,819 sf, Class-B office/retail
building located in the Grand Central submarket of New York City’s
Manhattan borough. The top five loans, which also include One
Campus Martius (9.0%), The Branson on Fifth (8.7%), 717 14th Street
(5.0%) and Shaner Hotels Portfolio (4.2%), represent 40.0% of the
initial pool balance, while the top 10 loans represent 56.4%.
KBRA’s analysis of the transaction incorporated our
multi-borrower rating process that begins with our analysts'
evaluation of 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 Guidelines. On an aggregate basis, KNCF was
4.5% 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, 37.6% less than third party appraisal values. The
pool has an in-trust KLTV of 106.4% and an all-in KLTV of 111.6%.
The model deploys rent and occupancy stresses, probability of
default regressions, and loss given default calculations to
determine losses for each collateral loan, which are then used to
assign our credit ratings.
For complete details on the analysis, please see our presale
report, JPMBB 2015-C27 published today at
www.kbra.com. The report includes our new KBRA
Comparative Analytic Tool (KCAT). KCAT is an easy to use, Excel
based workbook that provides the following information:
- KBRA Deal Tape – contains KBRA loan
level details for every loan in the pool, and the ability for users
to input adjustments to KNCF and KBRA Cap Rates and see the related
impact on key deal metrics.
- KBRA Credit Metrics Comparison Tool –
Enables the user to compare the subject transaction to a
user-defined transaction comp set. The feature provides many of the
fields that are provided in our CMBS Monthly Trend Watch
publication.
- Excel based property cash flow
statements for the top 20 loans.
Preliminary Ratings* Assigned: JPMBB
2015-C27
Class Class Balance
Expected Rating Class A-1
$38,412,000 AAA(sf)
Class A-2 $135,330,000
AAA(sf) Class A-3A1
$75,000,000 AAA(sf)
Class A-3A2 50,000,000
AAA(sf) Class A-4
$222,831,000 AAA(sf)
Class A-SB $63,997,000
AAA(sf) Class X-A
$635,279,000** AAA(sf)
Class X-B $52,776,000**
AAA(sf) Class X-C
$35,552,000** AAA(sf)
Class X-D $40,781,000**
BBB-(sf) Class X-E
$24,531,709** BB-(sf)
Class X-FG $49,709,000
B-(sf) Class X-NR
$28,232,488** NR Class
A-S $42,090,000 AAA(sf)
Class B $52,766,000
AA-(sf) Class C
$35,552,000 A-(sf)
Class EC $138,027,000***
A-(sf) Class D
$40,781,000 BBB-(sf)
Class E $24,531,000
BB-(sf) Class F
$11,021,000 B(sf) Class G
$8,366,000 B-(sf)
* 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. **Notional balance ***Maximum
amount that can be issued
17g-7 Disclosure
All Nationally Recognized Statistical Rating Organizations are
required, pursuant to SEC Rule 17g-7, to provide a description of a
transaction’s representations, warranties and enforcement
mechanisms that are available to investors when issuing credit
ratings. KBRA’s disclosure for this transaction can be found in the
report entitled CMBS: JPMBB 2015-C27 17g-7 Disclosure
Report.
Related publications (available at www.kbra.com):
CMBS: JPMBB 2015-C27 Presale Report
CMBS: U.S. CMBS Multi-Borrower Rating Methodology, published
February 23, 2012CMBS 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).
Analytical Contacts:KBRAEd
Barrett, 215-882-5845ebarrett@kbra.comorJoseph Kelly,
646-731-2365jkelly@kbra.com