NEW YORK, July 23, 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-C17, Commercial Mortgage Pass-Through Certificates, Series 2014-C17 (MSBAM 2014-C17). The preliminary ratings are based on information known to Morningstar as of July 23, 2014.
PRELIMINARY RATINGS (AS OF JULY 23, 2014) | |||||||
Class | Balance / Notional Amount | Preliminary Ratings | Morningstar DSCR | Morningstar BLTV | Morningstar ELTV | Credit Support Levels | |
ClassA-'1 | $40,800,000 | AAA | 2.36x | 66.5% | 56.5% | 30.000% | |
ClassA-'2 | $174,800,000 | AAA | 2.36x | 66.5% | 56.5% | 30.000% | |
ClassA-'SB | $74,400,000 | AAA | 2.36x | 66.5% | 56.5% | 30.000% | |
ClassA-'3 | $59,800,000 | AAA | 2.36x | 66.5% | 56.5% | 30.000% | |
ClassA-'4 | $170,000,000 | AAA | 2.36x | 66.5% | 56.5% | 30.000% | |
ClassA-'5 | $205,991,000 | AAA | 2.36x | 66.5% | 56.5% | 30.000% | |
ClassX-'A | $769,857,000 | AAA | 2.36x | 66.5% | 56.5% | N/A | |
ClassA-'S | $44,066,000 | AAA | 2.36x | 66.5% | 56.5% | 25.750% | |
Class B | $81,651,000 | AA | 2.14x | 73.5% | 63.6% | 17.875% | |
ClassPST | $185,336,000 | A- | 2.00x | 78.7% | 68.8% | 12.125% | |
Class C | $59,619,000 | A- | 2.00x | 78.7% | 68.8% | 12.125% | |
NON-OFFERED CERTIFICATES | |||||||
Class X-'B | $141,270,000 | AAA | 2.36x | 66.5% | 56.5% | N/A | |
Class X-'C | $79,059,774 | AAA | 2.36x | 66.5% | 56.5% | N/A | |
Class D | $46,658,000 | BBB- | 1.90x | 82.7% | 72.8% | 7.625% | |
Class E | $25,817,000 | BB | 1.85x | 84.9% | 75.0% | 5.135% | |
Class F | $14,993,000 | B | 1.82x | 86.2% | 76.3% | 3.689% | |
Class G | $38,249,774 | NR | N/A | N/A | N/A | N/A | |
NR - Not Rated | |||||||
The key characteristics of the portfolio of commercial real estate and multifamily mortgage loans supporting MSBAM 2014-C17 are:
- The portfolio consists of 67 mortgage loans secured by 72 commercial, multifamily, and manufactured housing real estate properties;
- An aggregate initial pool balance of approximately $1.04 billion;
- Properties are distributed across 25 states, with 54.5 percent of the cut-off portfolio balance located in California, Pennsylvania, Massachusetts, Arizona, and Texas;
- The largest loan exposure is the Marriott Downtown Philadelphia, representing 9.6 percent of the cut-off portfolio balance;
- The top 10 loans represent 47.3 percent of the cut-off portfolio balance; and
- The largest exposures by property type, as measured by the cut-off portfolio balance, are retail and hospitality with 48.9 percent and 24.9 percent, respectively.
Based on information provided on the arranger's website, Morningstar's analysis of the loans yielded the following Morningstar metrics:
- Weighted-average current and amortizing debt service coverage ratios (DSCRs) of 1.70x and 1.53x, respectively, based on the actual loan payment terms;
- An aggregate pool value of approximately $1.16 billion, 24.4 percent lower than the reported aggregated appraised values; and
- Beginning and ending portfolio loan-to-value (LTV) ratios of 89.5 percent and 79.6 percent, respectively.
For complete details about the preliminary ratings for this transaction, Morningstar's Presale Analysis Package, including the Presale Report, Asset Summary Reports, Loan Analysis Summary Table, 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.
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Morningstar, Inc. is not an NRSRO and its credit ratings on corporate issuers are not NRSRO credit ratings.
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