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Press release from PR Newswire

Morningstar Credit Ratings Assigns Preliminary Ratings for CGWF Commercial Mortgage Trust 2013-RKWH Commercial Mortgage Pass-Through Certificates, Series 2013-RKWH (CGWFCMT 2013-RKWH)

Tuesday, December 03, 2013

Morningstar Credit Ratings Assigns Preliminary Ratings for CGWF Commercial Mortgage Trust 2013-RKWH Commercial Mortgage Pass-Through Certificates, Series 2013-RKWH (CGWFCMT 2013-RKWH)

13:46 EST Tuesday, December 03, 2013

NEW YORK, Dec. 3, 2013 /PRNewswire/ -- Morningstar Credit Ratings, LLC today assigned preliminary ratings for the commercial mortgage-backed securities (CMBS) transaction CGWF Commercial Mortgage Trust 2013-RKWH Commercial Mortgage Pass-Through Certificates, Series 2013-RKWH. The preliminary ratings are based on information known to Morningstar as of Dec. 3, 2013.   

Preliminary Ratings (as of Dec. 2, 2013)

Class

Balance/

Notional Amt

Preliminary

Ratings

Morningstar DSCR

Morningstar BLTV

Morningstar ELTV

Credit Support Levels

Class A-1

$59,000,000

AAA

5.58 x

25.6%

25.6%

66.1%

Class A-2

41,000,000

AAA

5.58 x

25.6%

25.6%

66.1%

Class X-CP

128,052,000

AAA

n/a

n/a

n/a

n/a

Class B

55,438,000

AA+

3.59 x

39.8%

39.8%

47.3%

Class C

31,614,000

A

2.98 x

47.9%

47.9%

36.6%

Class D

41,776,000

BBB-

2.44 x

58.6%

58.6%

22.4%

Class E

66,172,000

BB-

1.89 x

75.5%

75.5%

0.0%

Class R

n/a

NR

n/a

n/a

n/a

n/a

The key characteristics of the portfolio supporting CGWFCMT 2013-RKWH are:

  • One $295 million interest-only mortgage loan secured by a portfolio of 16 hotels, consisting of 2,724 hotel rooms. The five largest hotels that represent 60.7 percent of the allocated loan amount are:
    • Marriott Wentworth By the Sea Hotel & Spa ? New Castle, N.H.;
    • Sheraton Suites Hotel ? Key West, Fla.;
    • Marriott Hotel Hollywood Beach ? Hollywood, Fla.;
    • The Jupiter Beach Resort ? Jupiter, Fla.; and
    • Courtyard by Marriott Boston Logan Airport ? Boston, Mass. 
  • Properties are distributed across six states: Florida, New Hampshire, Maine, New Jersey, Massachusetts, and Maryland. 

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

  • An aggregate net cash flow (NCF) of approximately $36.7 million;
  • The Morningstar NCF is lower than the arranger's NCF by 7.22 percent;
  • The DSCR on the loan is 1.89x based on Morningstar's stressed interest rate;
  • A portfolio-weighted average cap rate of 9.39 percent;
  • An aggregate portfolio value of approximately $390.6 million, or $143,382 per room. Our valuation is 24.3 percent lower than the reported aggregated appraised values; and
  • Based upon the Morningstar valuation, leverage on the portfolio is moderate at 75.5 percent.

For complete details about the preliminary ratings for this transaction, Morningstar's Pre-Sale analysis package, including the Pre-Sale Report, Asset Summary Reports, Summary of Historical Operating Results, 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.

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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