NEW YORK, July 29, 2014 /PRNewswire/ -- Morningstar Credit
Ratings, LLC today assigned preliminary ratings for the commercial
mortgage-backed securities (CMBS) transaction COMM 2014-FL4
Mortgage Trust, Commercial Mortgage Pass-Through Certificates,
Renaissance Aruba Certificates (COMM 2014-FL4, Renaissance Aruba
Certificates). The preliminary ratings are based on information
known to Morningstar as of July 29,
2014.
|
PRELIMINARY
RATINGS (AS OF JULY 29, 2014)
|
|
Class
|
Balance/
Notional
Amt.
|
Preliminary
Ratings
|
Morningstar
DSCR
|
Morningstar
BLTV
|
Morningstar
ELTV
|
Credit
Support
Levels
|
|
Class AR1
|
$45,384,000
|
AAA
|
4.03x
|
25.41%
|
21.76%
|
49.57%
|
|
Class
AR-X-CP
|
$90,000,000
|
AAA
|
N/A
|
N/A
|
N/A
|
N/A
|
|
Class
AR-X-EXT
|
$90,000,000
|
AAA
|
N/A
|
N/A
|
N/A
|
N/A
|
|
Class AR2
|
$12,902,000
|
AA-
|
3.14x
|
32.64%
|
28.87%
|
35.24%
|
|
Class AR3
|
$8,622,000
|
A-
|
2.73x
|
37.46%
|
33.63%
|
25.66%
|
|
Class AR4
|
$23,092,000
|
NR
|
N/A
|
N/A
|
N/A
|
N/A
|
|
Class AR5
|
$65,000,000
|
NR
|
N/A
|
N/A
|
N/A
|
N/A
|
The key characteristics of the mortgage loan collateral
supporting COMM 2014-FL4, Renaissance Aruba Certificates are:
- A single floating-rate mortgage loan with an initial 36-month
term, subject to two one-year extension options. The mortgage loan
is secured by the borrower's fee simple and leasehold interests in
the Renaissance Aruba Resort & Casino and Retail Mall,
including a 442-room resort, 114 time-share units, two casinos, two
shopping malls, and six restaurants and lounges;
- The principal balance of the mortgage loan, which is collateral
for the trust, is $155.0 million;
and
- The mortgage loan has been divided into a $90.0 million senior participation and a
$65.0 million junior
participation.
Based on information provided on the arranger's website,
Morningstar's analysis of the loan yielded the following
Morningstar metrics:
- A net cash flow (NCF) of $17.0
million, which is lower than the arranger's NCF by 2.4
percent;
- The Morningstar debt service coverage ratio (DSCR) is 2.03x,
based on the stressed interest rate of 7.9 percent;
- Morningstar valued the property at $178.6 million using a capitalization rate of 9.5
percent; and
- The Morningstar value, which equates to $404,050 per room, is 31.3 percent lower than the
appraised value of $260.0 million.
The Morningstar value resulted in a loan/value (LTV) ratio of 86.6
percent for the first mortgage loan and 50.4 percent for the senior
participation.
Morningstar's preliminary ratings are based on the $90.0 million senior participation only and do
not include the $65.0 million junior
participation. In addition, Morningstar's ratings do not address
the sovereign, currency, or tax risk arising from the location of
the loan collateral in Aruba.
Morningstar is not rating any other classes issued by the COMM
2014-FL4 trust and has not evaluated any issues or risks related to
any other assets or certificates or related impact.
For complete details about the preliminary ratings for this
transaction, Morningstar's Presale Analysis Package, including the
Presale Report 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,
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company has operations in 27 countries.
Morningstar, Inc. is not an NRSRO, and its credit ratings on
corporate issuers are not NRSRO credit ratings.
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Media Contact:
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SOURCE Morningstar, Inc.