KBRA Assigns Preliminary Ratings to WFCM 2024-C63
12 Agosto 2024 - 4:26PM
Business Wire
KBRA is pleased to announce the assignment of preliminary
ratings to 16 classes of WFCM 2024-C63, a $714.0 million CMBS
conduit transaction collateralized by 30 commercial mortgage loans
secured by 50 properties.
The collateral properties are located throughout 14 MSAs, of
which the three largest are New York (26.3%), Dallas – Fort Worth
(12.4%), and Inland Empire (9.1%). The pool has exposure to all
major property types, with four types representing more than 10.0%
of the pool balance: retail (26.9%), lodging (23.2%), multifamily
(16.8%), and office (16.5%). The loans have principal balances
ranging from $1.0 million to $65.0 million for the largest loan in
the pool, Bridge Point Rancho Cucamonga (9.1%), which is comprised
of two adjacent Class-A, LEED Gold certified warehouse and
distribution facilities that together contain 2.2 million sf,
located in Ranch Cucamonga, California, approximately 45 miles east
of Los Angeles. The five largest loans, which also include
Grapevine Mills (8.4%), Marriott Myrtle Beach Grande Dunes Resort
(8.4%), 610 Newport Center (7.7%), and Holiday Inn & Suites
Ocean City (7.4%), represent 41.0% of the initial pool balance,
while the top 10 loans represent 68.8%.
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
12.2% 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, 36.3% less than third party appraisal values. The
pool has an in-trust KLTV of 74.3% and an all-in KLTV of 77.7%. 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: North American CMBS Multi-Borrower Rating
Methodology
- CMBS: North American CMBS Property Evaluation Methodology
- CMBS: Methodology for Rating Interest-Only Certificates in CMBS
Transactions
- Structured Finance: Global Structured Finance Counterparty
Methodology
- 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: 1005487
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version on businesswire.com: https://www.businesswire.com/news/home/20240812487297/en/
Analytical Contacts
Elizabeth Yash, Senior Director (Lead Analyst) +1 646-731-3346
elizabeth.yash@kbra.com
Lynn D'Eugenio, Managing Director +1 646-731-2487
lynn.deugenio@kbra.com
Nitin Bhasin, Senior Managing Director, Global Head of CMBS
(Rating Committee Chair) +1 646-731-2334 nitin.bhasin@kbra.com
Business Development Contact
Andrew Foster, Director +1 646-731-1470
andrew.foster@kbra.com