Digital Media Net - Your Gateway To Digital media Creation. News and information on Digital Video, VR, Animation, Visual Effects, Mac Based media. Post Production, CAD, Sound and Music
Categories: News

KBRA Assigns Preliminary Ratings to FREMF 2019-K97 and Freddie Mac Structured Pass-Through Certificates K-097

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings to nine classes of FREMF Series 2019-K97 mortgage pass-through certificates and five classes of Freddie Mac structured pass-through certificates (SPCs), Series K-097 (see ratings list below). FREMF Series 2019-K97 is a $1.5 billion CMBS multi-borrower transaction. Freddie Mac will guarantee six classes of certificates issued in the underlying Series 2019-K97 securitization and will deposit the guaranteed underlying certificates into a separate trust that will issue the SPCs.

The underlying transaction is collateralized by 57 fixed-rate multifamily mortgage loans. The loans have principal balances that range from $1.7 million to $137.2 million. The largest exposure is represented by The Sycamores At North Park (9.3%), a 445-unit, Class-A, garden-style multifamily complex located in San Jose, California, approximately six miles northeast of the city’s CBD. The five largest loans represent 26.9% of the cut-off date balance and also include Santo Tomas and Santa Rosalia Apartments (5.7%), Ariva (4.2%), Bridge At Asher (3.8%), and Latitude (3.7%). The assets are located in 20 states, with the three largest concentrations in California (19.2%), Texas (16.7%), and Florida (15.8%).

KBRA’s analysis of the underlying transaction incorporated our CMBS Multi-Borrower rating process that begins with our analysts’ evaluation of the underlying collateral properties’ financial and operating performance, which is used to determine KBRA’s estimate of sustainable net cash flow (KNCF) and KBRA value using our U.S. CMBS Property Evaluation Methodology. KBRA’s weighted average KNCF for the portfolio is 2.5% less than the issuer’s NCF. KBRA capitalization rates were applied to each asset’s KNCF to derive individual property values that, on an aggregate basis, were 42.6% less than third-party appraisal values. The weighted average KBRA capitalization rate for the transaction is 8.56%. The KBRA credit 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 of the analysis, please see our pre-sale report, FREMF 2019-K97, 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: FREMF 2019-K97

Class

   

Class Balance (US$)

     

Expected KBRA Rating

A-1

   

$114,372,000

     

AAA (sf)

A-2

   

$1,083,053,000

     

AAA (sf)

A-M

   

$66,115,000

     

AA- (sf)

B

   

$58,770,000

     

A- (sf)

C

   

$36,730,000

     

BBB (sf)

D

   

$110,193,397

     

NR

X1

   

$1,197,425,000*

     

AAA (sf)

XAM

   

$66,115,000*

     

AAA (sf)

X2-A

   

$1,197,425,000*

     

AAA (sf)

X2-B

   

$271,808,397*

     

AAA (sf)

X3

   

$205,693,397*

     

NR

*Notional Balance

Preliminary Ratings Assigned: Freddie Mac Structured Pass-Through Certificates, Series K-097

Class

   

Class Balance (US$)

   

Expected KBRA Rating

A-1

   

$114,372,000

   

AAA (sf)

A-2

   

$1,083,053,000

   

AAA (sf)

A-M

   

$66,115,000

   

AA- (sf)

X1

   

$1,197,425,000*

   

AAA (sf)

XAM

   

$66,115,000*

   

AAA (sf)

X3

   

$205,693,397*

   

NR

*Notional Balance

To access ratings, reports and disclosures, click here.

Related Publications: (available at www.kbra.com)

CONNECT

WITH KBRA

Twitter

LinkedIn

Download the iOS App

YouTube

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:

Griffin Flagg, Senior Analyst

(646) 731-2433

gflagg@kbra.com

Yee Cent Wong, Senior Managing Director

(646) 731-2374

ywong@kbra.com

Laura Wolinsky, Director

(646) 731-2379

lwolinsky@kbra.com

Susannah Keagle, Senior Director

(646) 731-3357

skeagle@kbra.com

Staff

Recent Posts

The Virtual World May Be Different, May Take Longer Than We Expect

Content Insider #785 – Question Reality By Andy Marken - andy@markencom.com “I was accosted by…

10 mins ago

California Resources Corporation Announces Carbon Dioxide Management Agreement For CTV’s First Permanent Carbon Storage Project

Project Aims to Sequester Initial 100,000 Metric Tons of CO2 Per Annum in 2025 LONG…

47 mins ago

Brown-Forman Delivers Double-Digit Net Sales Growth in the First Half and Raises Full Year Outlook

LOUISVILLE, Ky.--(BUSINESS WIRE)--Brown-Forman Corporation (NYSE: BFA, BFB) reported financial results for its second quarter and…

47 mins ago

Altoida Announces Key Hires To Accelerate Development of Digital Phenotypes Platform for Alzheimer’s Disease

WASHINGTON--(BUSINESS WIRE)--#AR--Altoida, Inc., a precision neurology company pioneering non-invasive brain health measurement and neurological disease…

47 mins ago

JPIX partners With Cisco and Qwilt to Advance Streaming Media Delivery Across Japan

News Summary JPIX, one of Japan’s largest internet exchanges, joins forces with Cisco and Qwilt…

7 hours ago

Samenvatting: Activ Surgical beveiligt CE-markering voor ActivSight™ Intelligent Light

BOSTON--(BUSINESS WIRE)--Activ Surgical, een pionier op het gebied van digitale chirurgie, heeft vandaag aangekondigd dat…

16 hours ago