KBRA Assigns Preliminary Ratings to BANK 2019-BNK20
NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to 14 classes of BANK 2019-BNK20 commercial mortgage pass-through certificates.
BANK 2019-BNK20 is a $1.2 billion CMBS conduit transaction collateralized by 72 commercial mortgage loans secured by 95 properties. The collateral properties are located in 18 states, with three states, California (36.0%), New York (15.1%), and Texas (11.4%), representing more than 10.0% of the pool balance. The pool has exposure to most of the major property types, with three each representing 10.0% or more of the pool balance: office (40.5%), retail (27.3%), and multifamily (17.5%). The loans have principal balances ranging from $1.0 million to $120.0 million for the largest loan in the pool, Park Tower at Transbay (9.7%), which is secured by a 764,659 sf, Class-A LEED Gold certified CBD office building located in the South Financial District of downtown San Francisco, California. The five largest loans, which also include The Tower at Burbank (8.1%), 214-224 West 29th Street (6.0%), NKX Multifamily Portfolio (5.7%), and Jess Ranch Marketplace (4.9%), represent 34.3% of the initial pool balance, while the top 10 loans represent 51.9%.
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 6.7% 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, 38.6% less than third party appraisal values. The pool has an in-trust KLTV of 88.7% and an all-in KLTV of 94.1%. 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 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 ratings that differ from the preliminary ratings.
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Preliminary Ratings Assigned: BANK 2019-BNK20 |
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Class |
Initial Class Balance |
Expected KBRA Rating |
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|
A-1 |
$26,600,000 |
AAA (sf) |
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|
A-SB |
$47,100,000 |
AAA (sf) |
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|
A-2 |
$200,000,000 – $350,000,0001 |
AAA (sf) |
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|
A-3 |
$399,221,000 – $549,221,0001 |
AAA (sf) |
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|
A-S |
$146,950,000 |
AAA (sf) |
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|
B |
$45,555,000 |
AA- (sf) |
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|
C |
$45,554,000 |
A- (sf) |
||||
|
D |
$27,921,000 |
BBB+ (sf) |
||||
|
E |
$19,103,000 |
BBB- (sf) |
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|
F |
$22,043,000 |
BB- (sf) |
||||
|
G |
$11,756,000 |
B- (sf) |
||||
|
H |
$33,799,042 |
NR |
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|
X-A |
$822,921,0002 |
AAA (sf) |
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|
X-B |
$238,059,0002 |
AAA (sf) |
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|
X-D |
$47,024,0002 |
BBB- (sf) |
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1The exact initial certificate balances of the Class A-2 and A-3 certificates will not be determined until final pricing. However, the aggregate certificate balance of the Class A-2 and A-3 certificates is expected to be $749.2 million.
2Notional balance.
To access ratings, reports and disclosures, click here.
Related Publications: (available at www.kbra.com)
- BANK 2019-BNK20 Pre-Sale Report
- BANK 2019-BNK20 KBRA Conduit KCAT
- U.S. CMBS Property Evaluation Methodology
- U.S. CMBS Multi-Borrower Rating Methodology
- Methodology for Rating Interest-Only Certificates in CMBS Transactions
- Global Structured Finance Counterparty Methodology
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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:
Daniel Tegen, Senior Director
(646) 731-2429
dtegen@kbra.com
Yee Cent Wong, Senior Managing Director
(646) 731-2374
ywong@kbra.com
Sacheen Shah, Director
(646) 731-3363
sshah@kbra.com
Dayna Carley, Senior Director
(646) 731-2391
dcarley@kbra.com