NEW YORK, Sept. 16, 2014 /PRNewswire/ -- Morningstar Credit Ratings, LLC today assigned preliminary ratings for the commercial mortgage-backed securities (CMBS) transaction WFRBS Commercial Mortgage Trust 2014-C23, Commercial Mortgage Pass-Through Certificates, Series 2014-C23 (WFRBS 2014-C23). The preliminary ratings are based on information known to Morningstar as of Sept. 15, 2014.
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PRELIMINARY RATINGS (AS OF SEPT. 15, 2014)
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|
Class
|
Balance/
Notional Amt.
|
Preliminary
Ratings
|
Morningstar
DSCR
|
Morningstar
BLTV
|
Morningstar
ELTV
|
Credit Support
Levels
|
|
Offered Certificates
|
|
|
Class A-1
|
$43,360,000
|
AAA
|
2.33x
|
56.4%
|
46.5%
|
30.000%
|
|
Class A-2
|
$33,162,000
|
AAA
|
2.33x
|
56.4%
|
46.5%
|
30.000%
|
|
Class A-3
|
$8,500,000
|
AAA
|
2.33x
|
56.4%
|
46.5%
|
30.000%
|
|
Class A-4
|
$245,000,000
|
AAA
|
2.33x
|
56.4%
|
46.5%
|
30.000%
|
|
Class A-5
|
$257,750,000
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AAA
|
2.33x
|
56.4%
|
46.5%
|
30.000%
|
|
Class A-SB
|
$70,822,000
|
AAA
|
2.33x
|
56.4%
|
46.5%
|
30.000%
|
|
Class A-S
|
$56,451,000
|
AAA
|
2.33x
|
56.4%
|
46.5%
|
24.000%
|
|
Class B
|
$44,691,000
|
AA-
|
2.19x
|
59.9%
|
50.0%
|
19.250%
|
|
Class C
|
$35,281,000
|
A-
|
2.10x
|
62.7%
|
52.8%
|
15.500%
|
|
Class PEX
|
$136,423,000
|
A-
|
2.10x
|
62.7%
|
52.8%
|
15.500%
|
|
Class X-A
|
$715,045,000
|
AAA
|
2.33x
|
56.4%
|
46.5%
|
N/A
|
|
Class X-B
|
$156,416,000
|
AAA
|
2.33x
|
56.4%
|
46.5%
|
N/A
|
|
Non-Offered Certificates
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|
Class X-C
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$11,761,000
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BB
|
1.89x
|
69.6%
|
59.8%
|
N/A
|
|
Class X-D
|
$17,641,000
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B
|
1.85x
|
71.0%
|
61.1%
|
N/A
|
|
Class X-E
|
$39,986,629
|
NR
|
N/A
|
N/A
|
N/A
|
N/A
|
|
Class X-Y
|
$39,033,711
|
AAA
|
2.33x
|
56.4%
|
46.5%
|
N/A
|
|
Class D
|
$76,444,000
|
BBB-
|
1.92x
|
68.7%
|
58.8%
|
7.375%
|
|
Class E
|
$11,761,000
|
BB
|
1.89x
|
69.6%
|
59.8%
|
6.125%
|
|
Class F
|
$17,641,000
|
B
|
1.85x
|
71.0%
|
61.1%
|
4.250%
|
|
Class G
|
$39,986,629
|
NR
|
N/A
|
N/A
|
N/A
|
0.000%
|
The key characteristics of the portfolio of commercial and multifamily real estate loans supporting WFRBS 2014-C23 are:
- Ninety-two mortgage loans secured by 111 commercial and multifamily real estate properties;
- An aggregate initial pool balance of approximately $941 million;
- Properties are distributed across 22 states and the District of Columbia, with 61.1 percent of the cutoff portfolio balance located in California, New York, and Texas;
- The largest loan exposure is Bank of America Plaza located in Los Angeles, Calif., representing 12.4 percent of the cutoff portfolio balance;
- The top 10 loans represent 53.2 percent of the cutoff portfolio balance; and
- The largest exposures by property type are retail and office at 34.9 and 33.3 percent of the cutoff portfolio balance, 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 2.04x and 1.77x, respectively, based on the actual loan payment terms;
- An aggregate pool value of approximately $1.3 billion, 35.4 percent lower than the reported aggregated appraised value; and
- Beginning and ending portfolio loan/value (LTV) ratios of 74.7 percent and 67.7 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 at 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 473,000 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 investment advisory subsidiaries and had approximately $169 billion in assets under advisement and management as of June 30, 2014. The 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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SOURCE Morningstar, Inc.