NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of
preliminary ratings to 17 classes of BANK 2019-BNK18 (see ratings list
below), a $1.05 billion CMBS conduit transaction collateralized by 57
commercial mortgage loans secured by 243 properties.
The collateral properties are located in 17 states, with only one state
exposure, California (49.7%), representing more than 10.0% of the pool
balance. The pool has exposure to all of the major property types, with
two each representing 10.0% or more of the pool balance: office (55.8%)
and lodging (16.4%). The loans have principal balances ranging from $1.3
million to $100.0 million for the largest loan in the pool, 350 Bush
Street (9.6%), which is secured by a 387,599 sf, LEED Gold certified
office building located in the Financial District of San Francisco,
California. The five largest loans, which also include The Alhambra
(9.6%), Ford Factory (9.1%), Newport Corporate Center (7.1%), and 9201
West Sunset Boulevard (6.7%), represent 41.9% of the initial pool
balance, while the top 10 loans represent 65.8%.
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 U.S.
CMBS Property Evaluation Methodology. On an aggregate basis,
KNCF was 8.3% 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, 38.9% less than third party appraisal values. The pool
has an in-trust KLTV of 88.3% and an all-in KLTV of 95.7%. 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, BANK
2019-BNK18 published at www.kbra.com.
The report includes our BANK
2019-BNK18 KBRA Conduit Comparative Analytic Tool (KCAT), 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 included in our CMBS
Monthly Trend Watch publication. - Excel-based property cash flow statements for the top 20 loans.
To access ratings, reports and disclosures, click here.
Preliminary Ratings Assigned: BANK 2019-BNK18
| Class | Initial Class Balance | Expected KBRA Rating | ||||||
| A-1 | $18,052,000 | AAA (sf) | ||||||
| A-2 | $32,774,000 | AAA (sf) | ||||||
| A-SB | $30,882,000 | AAA (sf) | ||||||
| A-3 | $100,000,000 – $305,000,0001 | AAA (sf) | ||||||
| A-4 | $308,935,000 – $513,935,0001 | AAA (sf) | ||||||
| A-S | $90,682,000 | AAA (sf) | ||||||
| B | $49,689,000 | AA (sf) | ||||||
| C | $40,993,000 | A- (sf) | ||||||
| D | $29,813,000 | BBB+ (sf) | ||||||
| E | $23,602,000 | BBB- (sf) | ||||||
| F | $19,876,000 | BB- (sf) | ||||||
| G | $9,938,000 | B- (sf) | ||||||
| H | $33,539,971 | NR | ||||||
| X-A | $695,643,0002 | AAA (sf) | ||||||
| X-B | $181,364,0002 | AAA (sf) | ||||||
| X-D | $53,415,0002 | BBB- (sf) | ||||||
| X-F | $19,876,0002 | BB- (sf) | ||||||
| X-G | $9,938,0002 | B- (sf) | ||||||
| X-H | $33,539,9712 | NR | ||||||
1The exact initial certificate balances of the Class A-3 and
A-4 certificates will not be determined until final pricing. However,
the aggregate certificate balance of the Class A-3 and A-4 certificates
is expected to be $613.935 million.
2Notional balance.
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. KBRA is also 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.
Contacts
Analytical Contacts:
Kenneth
Kor, Associate Director
(646) 731-2339
[email protected]
James Wang, Senior Director
(646) 731-2450
[email protected]
Susannah Keagle, Senior Director
(646) 731-3357
[email protected]
