Morningstar Credit Ratings Assigns Preliminary Ratings for Citigroup Commercial Mortgage Trust 2014-388G, Commercial Mortgage Pass-Through Certificates, Series 2014-388G (CGCMT 2014-388G) - KPTV - FOX 12

Morningstar Credit Ratings Assigns Preliminary Ratings for Citigroup Commercial Mortgage Trust 2014-388G, Commercial Mortgage Pass-Through Certificates, Series 2014-388G (CGCMT 2014-388G)

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SOURCE Morningstar, Inc.

NEW YORK, May 29, 2014 /PRNewswire/ -- Morningstar Credit Ratings, LLC today assigned preliminary ratings for the commercial mortgage-backed securities (CMBS) transaction Citigroup Commercial Mortgage Trust 2014-388G, Commercial Mortgage Pass-Through Certificates, Series 2014-388G (CGCMT 2014-388G). The preliminary ratings are based on information known to Morningstar as of May 28, 2014.

PRELIMINARY RATINGS (AS OF MAY 28, 2014)


Balance/Notional Amt.

Preliminary Ratings

Morningstar DSCR

Morningstar BLTV

Morningstar ELTV

Credit Support Levels

Class

Class A

$595,156,000

AAA

3.04x

40.91%

34.17%

58.95%

Class X-CP

$595,156,000

AAA

N/A

N/A

N/A

N/A

Class X-NCP

$595,156,000

AAA

N/A

N/A

N/A

N/A

Class B

$218,475,000

AA+

2.22x

55.93%

46.71%

43.89%

Class C

$128,072,000

AA-

1.92x

64.73%

54.06%

35.05%

Class D

$138,618,000

A-

1.67x

74.26%

62.02%

25.50%

Class E

$323,946,000

BB-

1.29x

96.53%

80.61%

3.15%

Class F

$45,733,000

BB-

1.25x

99.67%

83.24%

0.00%

The key characteristics of the mortgage loan collateral supporting CGCMT 2014-388G are:

  • A single floating-rate mortgage loan with an initial term of four years and subject to three one-year extension options. The mortgage loan is secured by the borrower's fee-simple interest in a single-tenant Class A office property in Manhattan;
  • The principal balance of the mortgage loan, which is collateral for the trust, is $1.4 billion; and
  • The transaction does not include any subordinate debt.

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

  • A Morningstar net cash flow (NCF) of $117.6 million;
  • The Morningstar NCF is lower than the arranger's NCF by 15.9 percent;
  • A current debt service coverage ratio (DSCR) of 4.27x based on the loan spread and current one-month LIBOR. Based on the stressed interest rate of 6.5 percent, the Morningstar DSCR is 1.25x;
  • Morningstar valued the property at $1.7 billion using a capitalization rate of 6.8 percent. To account for certain tenant allowances owed by the borrower to the tenant, Morningstar made a downward adjustment of $287.2 million to its term value, arriving at an adjusted term value of $1.4 billion. Morningstar's balloon value is unchanged at $1.7 billion; and
  • The Morningstar term value, which equates to $552 per square foot, is 24.2 percent lower than the appraised value of $1.9 billion. The Morningstar term value resulted in a weighted-average beginning loan-to-value (LTV) ratio of 99.7 percent.

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, 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 456,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 12 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 had approximately $164 billion in assets under advisement and management as of March 31, 2014. 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.

©2014 Morningstar, Inc. All Rights Reserved.

MORN-R

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

©2012 PR Newswire. All Rights Reserved.

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