Morningstar Credit Ratings Assigns Preliminary Ratings for Morgan Stanley Bank of America Merrill Lynch Trust 2014-C18, Commercial Mortgage Pass-Through Certificates, Series 2014-C18, Class 300 Certificates (MSBAM 2014-C18, Class 300 Certificates)
NEW YORK, Sept. 12, 2014 /PRNewswire/ -- Morningstar Credit Ratings, LLC today assigned preliminary ratings for the commercial mortgage-backed securities (CMBS) transaction Morgan Stanley Bank of America Merrill Lynch Trust 2014-C18, Commercial Mortgage Pass-Through Certificates, Series 2014-C18, Class 300 Certificates (MSBAM 2014-C18, Class 300 Certificates). The preliminary ratings are based on information known to Morningstar as of Sept. 12, 2014.
PRELIMINARY RATINGS (AS OF SEPT. 12, 2014) |
||||||
Balance/ |
Preliminary Ratings |
Morningstar DSCR |
Morningstar BLTV |
Morningstar ELTV |
Credit Support |
|
Class |
||||||
Class 300-A |
$67,400,000 |
AA+ |
2.34x |
54.35% |
45.99% |
37.390% |
Class 300-B |
$39,000,000 |
A |
2.07x |
61.47% |
53.12% |
29.180% |
Class 300-C |
$57,000,000 |
BBB |
1.77x |
71.89% |
63.53% |
17.180% |
Class 300-D |
$49,000,000 |
BB- |
1.58x |
80.84% |
72.49% |
6.860% |
Class 300-E |
$32,000,000 |
B |
1.47x |
86.78% |
78.40% |
0.000% |
The key characteristics of the mortgage loan collateral supporting MSBAM 2014-C18, Class 300 Certificates are:
- A single fixed-rate, 10-year commercial mortgage loan with an initial principal balance of $475.0 million;
- The mortgage loan has been split into three pari passu A notes totaling $230.6 million and a B note in the amount of $244.4 million; and
- The mortgage loan is secured by the fee simple interest in 300 North LaSalle located in Chicago's Central Business District, a 1.3-million-square-foot Class A+ office tower.
Based on information provided on the arranger's website, Morningstar's analysis of the loan yielded the following Morningstar metrics:
- A net cash flow of $39.7 million;
- An amortizing debt service coverage ratio (DSCR) of 1.47x, based on the actual loan payment terms;
- Using the capitalization rate of 7.25 percent, Morningstar valued the property at $547.2 million; and
- The Morningstar value resulted in beginning and ending loan/value (LTV) ratios of 86.8 percent and 78.4 percent, respectively.
For complete details about the preliminary ratings for this transaction, Morningstar's Presale Analysis Package, including the Presale Report and the Representations, Warranties, and Enforcement Mechanisms, is available under the Ratings Reports tab at 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 473,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 12 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 investment advisory subsidiaries and had approximately $169 billion in assets under advisement and management as of June 30, 2014. The company has operations in 27 countries.
Morningstar, Inc. is not an NRSRO, and its credit ratings on corporate issuers are not NRSRO credit ratings.
©2014 Morningstar, Inc. All Rights Reserved.
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SOURCE Morningstar, Inc.
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