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 2022-K140 and Freddie Mac Structured Pass-Through Certificate Series K-140

NEW YORK–(BUSINESS WIRE)–#KBRA–KBRA is pleased to announce the assignment of preliminary ratings to four classes of FREMF Series 2022-K140 mortgage pass-through certificates and three classes of Freddie-Mac structured pass-through certificates (SPCs), Series K-140. FREMF 2022-K140 is a $1.27 billion CMBS multi-borrower transaction. Freddie Mac will guarantee six classes of certificates issued in the underlying Series 2022-K140 securitization and will deposit the guaranteed underlying certificates into a separate trust that will issue the SPCs.

The underlying transaction is collateralized by 46 fixed-rate multifamily mortgage loans. The loans have principal balances that range from $1.7 million to $123.8 million. The largest exposure is represented by Downtown 5th (9.8%), which is secured by a high-rise multifamily complex located in Miami, Florida. The five largest loans represent 35.3% of the cut-off date balance and also include Exton Crossing (7.9%), Isabella Greenwood Village (6.7%), Icon Apartment Homes At Ferguson Farm Phase I (5.6%), and Canvas Valley Forge (5.3%). The assets are located in 23 states, with the three largest concentrations in Texas (16.6%), Florida (14.7%), and Pennsylvania (13.2%).

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 3.3% 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 49.1% less than third-party appraisal values. The weighted average KBRA capitalization rate for the transaction is 8.38%. 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.

Click here to view the report. To access ratings and relevant documents, click here.

Related Publications

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority pursuant to the Temporary Registration Regime. 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.

Contacts

Analytical Contacts
Faruk Sarikaya (Lead Analyst)

+1 (646) 731-1223
faruk.sarikaya@kbra.com

Patrick McQuinn, Senior Director

+1 (646) 731-2445

patrick.mcquinn@kbra.com

Nitin Bhasin, Senior Managing Director (Rating Committee Chair)

+1 (646) 731-2334

nitin.bhasin@kbra.com

Rachel S. Kwon, Associate Director

+1 (646) 731-3353

rachel.kwon@kbra.com

Business Development Contact
Michele Patterson, Managing Director

+1 (646) 731-2397

michele.patterson@kbra.com

Staff

Recent Posts

Arcadia Biosciences (RKDA) Announces Fourth-Quarter and Full-Year 2023 Financial Results and Business Highlights

-- Second continuous year of gross profit growth -- -- Total SG&A expenses declined to…

47 mins ago

KCP Credit Analysis Now Available on the Bloomberg Terminal

NEW YORK--(BUSINESS WIRE)--#KBRA--KBRA Credit Profile (KCP), an industry-leading monthly surveillance platform covering more than 1,300…

48 mins ago

Mojo Vision Appoints Dr. Achin Bhowmik to the Board of Directors

President of Society for Information Display joins as independent board memberSARATOGA, Calif.--(BUSINESS WIRE)--Mojo Vision, the…

49 mins ago

Southern Glazer’s Wine & Spirits Announces Leaders for New Enterprise Data Center of Excellence

MIAMI & DALLAS--(BUSINESS WIRE)--Southern Glazer's Wine & Spirits (Southern Glazer's)—the world’s preeminent distributor of beverage…

50 mins ago

Rising Supply Draws in Some Buyers, Even as Housing Payments Soar 10% to All-Time High

Redfin reports there are more homes for buyers to choose from, with new listings posting…

51 mins ago

BNSF Railway builds upon safety record by utilizing virtual reality for training

FORT WORTH, Texas--(BUSINESS WIRE)--As the railway industry continues to power the American economy with sustainable…

5 hours ago