Morningstar Credit Ratings Assigns Preliminary Ratings for WFRBS Commercial Mortgage Trust 2014-C21, Commercial Mortgage Pass-Through Certificates, Series 2014-C21 (WFRBS 2014-C21)
NEW YORK, July 14, 2014 /PRNewswire/ — Morningstar Credit Ratings, LLC today assigned preliminary ratings for the commercial mortgage-backed securities (CMBS) transaction WFRBS Commercial Mortgage Trust 2014-C21, Commercial Mortgage Pass-Through Certificates, Series 2014-C21 (WFRBS 2014-C21). The preliminary ratings are based on information known to Morningstar as of July 14, 2014.
PRELIMINARY RATINGS (AS OF JULY 14, 2014) ---------------------------------------- Class Balance / Preliminary Morningstar Morningstar Morningstar Credit Support Notional Amount Ratings DSCR BLTV ELTV Levels --- --------------- ------- ---- ---- ---- ------ Class A-1 $66,230,000 AAA 2.34x 57.6% 47.6% 30.000% Class A-2 $109,149,000 AAA 2.34x 57.6% 47.6% 30.000% Class A-3 $48,253,000 AAA 2.34x 57.6% 47.6% 30.000% Class A-4 $330,000,000 AAA 2.34x 57.6% 47.6% 30.000% Class A-5 $345,689,000 AAA 2.34x 57.6% 47.6% 30.000% Class A-SB $98,736,000 AAA 2.34x 57.6% 47.6% 30.000% Class A-S $92,677,000 AAA 2.34x 57.6% 47.6% 23.500% Class B $98,023,000 AA- 2.14x 62.8% 52.8% 16.625% Class C $53,468,000 A- 2.05x 65.6% 55.6% 12.875% Class PEX $244,168,000 A- 2.05x 65.6% 55.6% 12.875% Class X-A $1,090,734,000 AAA 2.34x 57.6% 47.6% N/A Class X-B $235,256,000 AAA 2.34x 57.6% 47.6% N/A NON-OFFERED CERTIFICATES Class X-C $19,605,000 AAA 2.34x 57.60% 47.60% N/A Class X-D $80,201,349 AAA 2.34x 57.60% 47.60% N/A Class D $83,765,000 BBB- 1.92x 70.10% 60.00% 7.000% Class E $19,605,000 BB 1.89x 71.10% 61.10% 5.625% Class F $26,733,000 B 1.86x 72.50% 62.50% 3.750% Class G $53,468,349 NR N/A N/A N/A N/A Class V N/A NR N/A N/A N/A N/A Class R N/A 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 WFRBS 2014-C21 are:
-- The portfolio consists of 122 mortgage loans secured by 146 commercial, multifamily, and manufactured housing real estate properties; -- An aggregate initial pool balance of approximately $1.43 billion; -- Properties are distributed across 30 states, with 56.7 percent of the cut-off portfolio balance located in New York, Michigan, Pennsylvania, California, and Virginia; -- The largest loan exposures are Fairview Park Drive in Virginia and Queens Atrium in New York, each representing 6.3 percent of the cut-off portfolio balance; -- The top 10 loans represent 42.2 percent of the cut-off portfolio balance; and -- The largest exposures by property type, as measured by the cut-off portfolio balance, are office and multifamily with 27.9 percent and 25.7 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 1.97x and 1.79x, respectively, based on the actual loan payment terms; -- An aggregate pool value of approximately $1.89 billion, 33.8 percent lower than the reported aggregated appraised values; and -- Beginning and ending portfolio loan-to-value (LTV) ratios of 75.4 percent and 65.3 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.
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