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Press release from PR Newswire

/C O R R E C T I O N -- Morningstar, Inc./

Thursday, November 14, 2013

/C O R R E C T I O N -- Morningstar, Inc./

15:00 EST Thursday, November 14, 2013

In the news release, Morningstar Credit Ratings Assigns Preliminary Ratings for Hilton USA Trust 2013-HLT Commercial Mortgage Pass-Through Certificates, Series 2013-HLT, issued 14-Nov-2013 by Morningstar, Inc. over PR Newswire, we are advised by the company that the paragraph after the "Preliminary Ratings" table should read, "The key characteristics of the Hilton USA Trust 2013-HLT deal are:" rather than, "The key characteristics of the portfolio of commercial real estate and multifamily mortgage loans supporting Hilton USA Trust 2013-HLT are:" as originally issued inadvertently. In addition, in the first bullet point after that paragraph, "$3.5 million" should read "$3.5 billion." The complete, corrected release follows:

Morningstar Credit Ratings Assigns Preliminary Ratings for Hilton USA Trust 2013-HLT Commercial Mortgage Pass-Through Certificates, Series 2013-HLT

NEW YORK, Nov. 14, 2013 /PRNewswire/ -- Morningstar Credit Ratings, LLC today assigned preliminary ratings for the commercial mortgage-backed securities (CMBS) transaction  Hilton USA Trust 2013-HLT Commercial Mortgage Pass-Through Certificates, Series 2013-HLT.   The preliminary ratings are based on information known to Morningstar as of Nov. 14, 2013.

The preliminary ratings are:

Preliminary Ratings (as of: NOV. 14, 2013)

 

Class

Balance/

Notional Amt

Preliminary

Ratings

Morningstar DSCR

Morningstar BLTV

Morningstar ELTV

Credit Support Levels

Component A ? Floating-Rate Certificates

Class A-FL

$393,000,000

AAA

4.30 x

35.0%

35.0%

55.1%

Class X-FL

875,000,000

AAA

n/a

n/a

n/a

n/a

Class B-FL

123,000,000

AA-

3.28 x

45.9%

45.9%

41.0%

Class C-FL

93,000,000

A-

2.78 x

54.2%

54.2%

30.4%

Class D-FL

99,000,000

BBB-

2.39 x

63.0%

63.0%

19.1%

Class E-FL

167,000,000

BB-

1.93 x

77.9%

77.9%

0.0%

Component B ? Fixed-Rate Certificates

Class A-FX

$1,179,000,000

AAA

5.69 x

35.0%

35.0%

55.1%

Class X-1FX

1,723,000,000

AAA

n/a

n/a

n/a

n/a

Class X-2FX

1,723,000,000

AAA

n/a

n/a

n/a

n/a

Class B-FX

369,000,000

AA-

4.33 x

45.9%

45.9%

41.0%

Class C-FX

280,000,000

A-

3.67 x

54.2%

54.2%

30.4%

Class D-FX

338,000,000

BBB-

3.10 x

63.0%

63.0%

19.1%

Class E-FX

459,000,000

BB-

2.55 x

77.9%

77.9%

0.0%

The key characteristics of the Hilton USA Trust 2013-HLT deal are:

  • Twenty-three hotels secure this $3.5 billion mortgage loan.
  • Eighteen full-service hotels, two all-suite hotels, two select-service hotels, and one limited-service hotel.
  • Hotels are distributed across 13 states, Puerto Rico, and Washington, D.C. 
  • The five largest hotels represent 75.6 percent of the allocated loan balance, which are Hilton flagship assets, including the Hilton Hawaiian Village in Waikiki, New York Hilton Midtown, Hilton San Francisco Union Square, Hilton New Orleans Riverside, and the Hilton Chicago.

Based on information provided on the arranger's website, Morningstar's analysis of the loans yielded the following Morningstar metrics:

  • An aggregate net cash flow (NCF) of approximately $404.8 million.
  • The Morningstar NCF is lower than the arranger's NCF by 7.8 percent.
  • Weighted-average current DSCR of 2.36 x based on the actual loan payment terms.
  • A portfolio-weighted average cap rate of 8.29 percent.
  • An aggregate pool value of approximately $4.49 billion, 31.5 percent lower than the reported aggregated appraised values.
  • Beginning and ending portfolio loan-to-value (LTV) ratios of 77.9 percent and 77.9 percent, respectively.

For complete details about the preliminary ratings of this transaction, Morningstar's Pre-Sale analysis package, including the Pre-Sale Report, Asset Summary Reports, Analysis Summary Table, and the Representations Warranties and Enforcement Mechanisms, is available under the "Ratings Reports" tab on https://ratingagency.morningstar.com. Information received subsequently 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 437,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 10 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 registered investment advisor subsidiaries and has more than $176 billion in assets under advisement and management as of Sept. 30, 2013. The company has operations in 27 countries.

Morningstar, Inc. is not an NRSRO and its credit ratings on corporate and municipal issuers are not NRSRO credit ratings.

©2013 Morningstar, Inc. All Rights Reserved.

MORN-R

Media Contact:

Michelle Weiss, +1 267-960-6014 or michelle.weiss@morningstar.com

SOURCE Morningstar, Inc.

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