KBRA Assigns Preliminary Ratings to BMO 2024-5C4
19 Abril 2024 - 2:36PM
Business Wire
KBRA is pleased to announce the assignment of preliminary
ratings to 14 classes of BMO 2024-5C4, a $862.9 million CMBS
conduit transaction collateralized by 39 commercial mortgage loans
secured by 71 properties.
The collateral properties are located throughout 26 MSAs, of
which the three largest are New York (33.7%), Las Vegas (5.7%),
Cincinnati (5.5%), Washington – NoVA - MD (4.4%), and Baltimore
(4.0%). The pool has exposure to all property types, with three
types representing more than 15.0% of the pool balance: multifamily
(31.7%), industrial (15.5%), and office (15.5%). The loans have
trust principal balances ranging from $4.1 million to $70.0 million
for the largest loan in the pool, GNL Industrial Portfolio (8.1%),
which is secured by 19 industrial properties and one office
building located in 12 states that together comprise 3.9 million
sf. The five largest loans, which also include 620 W 153rd Street
(8.1%), 28-40 West 23rd Street (5.8%), Galleria at Sunset (5.7%),
and Vero Office Portfolio (5.0%), represent 32.7% of the initial
pool balance, while the top 10 loans represent 51.6%.
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
11.7% 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, 37.6% less than third party appraisal values. The
pool has an in-trust KLTV of 91.1% and an all-in KLTV of 92.4%. 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.
To access rating and relevant documents, click here.
Click here to view the report.
Methodologies
- CMBS: U.S. CMBS Multi-Borrower Rating Methodology
- CMBS: U.S. CMBS Property Evaluation Methodology
- Structured Finance: Global Structured Finance Counterparty
Methodology
- CMBS: Methodology for Rating Interest-Only Certificates in CMBS
Transactions
- ESG Global Rating Methodology
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. 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.
Doc ID: 1004008
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version on businesswire.com: https://www.businesswire.com/news/home/20240419574467/en/
Analytical
Samuel O'Connell, Associate (Lead Analyst) +1 646-731-1300
samuel.oconnell@kbra.com
James Wang, Managing Director +1 646-731-2450
james.wang@kbra.com
Nitin Bhasin, Senior Managing Director, Global Head of CMBS
(Rating Committee Chair) +1 646-731-2334 nitin.bhasin@kbra.com
Business Development
Daniel Stallone, Managing Director +1 646-731-1308
daniel.stallone@kbra.com