NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) announces the assignment of preliminary ratings to nine classes of CGDB 2019-MOB, a CMBS single-borrower securitization.
The collateral for the transaction is a $490.0 million non-recourse, first lien mortgage loan. The floating rate, interest-only loan has a two-year initial term and includes three, one-year extension options. The loan is secured by the borrowers’ fee simple and leasehold interests in 34 assets, all of which are medical office buildings. The assets are located in 13 states, the three largest of which are New York (six properties, 26.6% of loan amount), Texas (eight, 20.9%), and Indiana (six, 10.7%). The properties are leased to over 150 tenants, with three that account for more than 5.0% of base rent: Crystal Run Healthcare, LLP (24.7% of base rent), Provision Healthcare Partners, LLP (9.3%), and Sutter Health (6.1%).
KBRA’s analysis of the transaction included a detailed evaluation of the properties’ cash flows using our U.S. CMBS Property Evaluation Methodology and the application of our U.S. CMBS Single Borrower & Large Loan Rating Methodology. In addition, KBRA also relied on its Global Structured Finance Counterparty Methodology for assessing counterparty risk in this transaction, to the extent deemed applicable.
The results of our analysis yielded a KBRA net cash flow (KNCF) of $40.9 million. To value the properties, we applied a blended capitalization rate of 9.16% to arrive at a KBRA value of $447.0 million. The resulting KBRA Loan to Value (KLTV) is 109.6%. In our analysis of the transaction, we also reviewed and considered third party engineering, environmental, and appraisal reports; the results of our site inspection of the properties, and legal documentation review.
For further details on KBRA’s analysis, please see our pre-sale report, CGDB 2019-MOB, published 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: CGDB 2019-MOB
|
Class |
Initial Class Balance |
Expected KBRA Rating |
|
A |
$187,393,000 |
AAA (sf) |
|
X-CP1 |
$94,182,400 |
AAA (sf) |
|
X-NCP1 |
$117,728,000 |
AAA (sf) |
|
B |
$44,093,000 |
AA (sf) |
|
C |
$33,069,000 |
A+ (sf) |
|
D |
$40,566,000 |
BBB+ (sf) |
|
E |
$38,888,000 |
BBB- (sf) |
|
F |
$52,000,000 |
BB- (sf) |
|
G |
$69,491,000 |
B- (sf) |
1Notional amount.
To access ratings, reports and disclosures, click here.
Related Publications: (available at www.kbra.com)
- CGDB 2019-MOB Pre-Sale Report
- U.S. CMBS Property Evaluation Methodology
- U.S. CMBS Single Borrower & Large Loan Rating Methodology
- Methodology for Rating Interest-Only Certificates in CMBS Transactions
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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:
Michael McGorty, Director
(646) 731-2393
[email protected]
Michael Brown, Managing Director
(646) 731-2307
[email protected]
Susannah Keagle, Senior Director
(646) 731-3357
[email protected]
Business Development Contact:
Michele Patterson, Managing Director
(646) 731-2397
[email protected]
