Morningstar Credit Ratings Assigns Preliminary Ratings for GS Mortgage Securities Corporation Trust 2014-NEW, Commercial Mortgage Pass-Through Certificates, Series 2014-New (GSMS 2014-NEW)

NEW YORK, Feb. 19, 2014 /PRNewswire/ -- Morningstar Credit Ratings, LLC today assigned preliminary ratings for the commercial mortgage-backed securities (CMBS) transaction GS Mortgage Securities Corporation Trust 2014-NEW, Commercial Mortgage Pass-Through Certificates, Series 2014-NEW (GSMS 2014-NEW). The preliminary ratings are based on information known to Morningstar as of Feb. 19, 2014.

PRELIMINARY RATINGS (AS OF FEB. 19, 2014)


Balance/

Preliminary

Morningstar DSCR

Morningstar BLTV

Morningstar ELTV

Credit Support Levels

Class

Notional Amt

Ratings

Class A-1

$38,149,000

AAA

3.57x

40.40%

30.00%

46.40%

Class A-2

$126,056,000

AAA

3.57x

40.40%

39.00%

46.40%

Class X-A

$164,205,000

AAA

N/A

N/A

N/A

N/A

Class X-B

$142,118,136

AAA

N/A

N/A

N/A

N/A

Class B

$36,491,000

AA

2.92x

49.40%

39.00%

34.48%

Class C

$27,367,000

A

2.57x

56.10%

45.70%

25.55%

Class D

$33,571,000

BBB+

2.24x

64.40%

54.00%

14.59%

Class E

$44,689,136

BB+

1.91x

75.40%

65.00%

0.00%

The key characteristics of the single-loan commercial real estate transaction supporting GSMS 2014-NEW are:

  • Cut-off date loan balance of $306.32 million;
  • Seven-year mortgage loan that amortizes on a 30-year schedule and matures in January 2021;
  • Mezzanine debt of $49.65 million is included in the transaction;
  • Loan collateral consists of first liens on 25 senior housing properties (independent living) in 17 states;
  • The portfolio of properties has 2,838 units and was 89.6 percent occupied as of October 2013; and
  • All of the properties are 100 percent private-pay, with no revenues derived from Medicaid or Medicare.

Based on information provided on the arranger's website, Morningstar's analysis of the loan yielded the following Morningstar metrics:

  • Net cash flow (NCF) of $33.76 million, which is lower than the arranger's NCF by 5.4 percent;
  • Weighted-average amortizing debt service coverage ratio (DSCR) of 1.91x based on the actual loan payment terms;
  • Morningstar NCF debt yield of 11.0 percent;
  • Morningstar property value of $406.20 million, 18.3 percent lower than the appraised value; and
  • Beginning and ending loan-to-value (LTV) ratios of 75.4 percent and 65.0 percent, respectively.

For complete details about the preliminary ratings for this transaction, Morningstar's Pre-Sale analysis package, including the Pre-Sale Report and the Representations, Warranties, and Enforcement Mechanisms, is available under the "Ratings Reports" tab on https://ratingagency.morningstar.com. Information subsequently received could result in the assignment of final ratings that differ from the preliminary ratings.

About Morningstar Credit Ratings, LLC and Morningstar, Inc.
Morningstar Credit Ratings, LLC is a Nationally Recognized Statistical Rating Organization (NRSRO) that specializes in structured credit research and ratings, and offers a wide array of services including new-issue ratings and analysis, operational risk assessments, surveillance services, data, and technology solutions.

Morningstar Credit Ratings, LLC is a subsidiary of Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research in North America, Europe, Australia, and Asia.

Morningstar, Inc. offers an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. Morningstar provides data on approximately 446,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 10 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its registered investment advisor subsidiaries and had approximately $159 billion in assets under advisement and management as of Dec. 31, 2013. The company has operations in 27 countries.

Morningstar, Inc. is not an NRSRO and its credit ratings on corporate and municipal issuers are not NRSRO credit ratings.

©2014 Morningstar, Inc. All Rights Reserved.

MORN-R

Media Contact:
Michelle Weiss, +1 267-960-6014 or michelle.weiss@morningstar.com

SOURCE Morningstar, Inc.



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