MORNINGSTAR, INC. 
By NEW YORK, Jan. 6, 2014 /PRNewswire/ -- Morningstar Credit Ratings, LLC today assigned preliminary ratings for the commercial mortgage-backed securities (CMBS) transaction COMM 2014-CCRE14 Mortgage Trust Commercial Mortgage Pass-Through Certificates. The preliminary ratings are based on information known to Morningstar as of Jan. 6, 2014.
PRELIMINARY RATINGS (AS OF JAN. 6, 2014)
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Class Balance/ Notional Amt Preliminary Ratings Morningstar DSCR Morningstar BLTV Morningstar ELTV Credit Support
Levels
----- --------------------- ------------------- ---------------- ---------------- ---------------- --------------
Class A-1 $56,404,000 AAA 2.38x 56.6% 49.3% 30.000%
Class A-2 $355,067,000 AAA 2.38x 56.6% 49.3% 30.000%
Class A-SB $85,622,000 AAA 2.38x 56.6% 49.3% 30.000%
Class A-3 $150,000,000 AAA 2.38x 56.6% 49.3% 30.000%
Class A-4 $317,300,000 AAA 2.38x 56.6% 49.3% 30.000%
Class X-A $1,095,274,000 AAA N/A N/A N/A N/A
Class A-M $130,881,000 AAA 2.38x 56.6% 49.3% 20.500%
Class B $96,162,000 AA- 2.21x 60.9% 53.6% 13.375%
Class PEZ $275,540,000 A- 2.13x 63.2% 56.0% 10.000%
Class C $46,497,000 A- 2.13x 63.2% 56.0% 10.000%
Class X-B $187,714,000 NR N/A N/A N/A N/A
Class X-C $94,717,377 NR N/A N/A N/A N/A
Class D $43,054,000 BBB 2.03x 65.8% 58.6% 6.875%
Class E $30,998,000 BB 2.01x 66.8% 59.6% 4.625%
Class F $15,499,000 B 1.97x 68.2% 61.0% 3.500%
Class G $48,220,377 NR N/A N/A N/A N/A
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The key characteristics of the portfolio of commercial real estate and multifamily mortgage loans supporting COMM 2014-CCRE14 are:
-- Fifty-nine loans secured by 87 multifamily and commercial real estate
properties;
-- An aggregate initial pool balance of approximately $1.38 billion;
-- An average initial principal balance of approximately $23.4 million;
-- The majority of the loans in the portfolio--47 loans, or 70.5 percent by
balance--have a 10-year term;
-- Properties are distributed across 26 states, with 60.6 percent of the
cut-off portfolio balance located in New York, California, Texas,
Missouri, and Maryland;
-- The largest loan exposure is the Google and Amazon Office Portfolio
representing 11.3 percent of the cut-off portfolio balance;
-- The top 10 largest loans represent 55.7 percent of the cut-off portfolio
balance; and
-- The largest exposures by property type are office, at 50.3 percent, and
multifamily, with 22.0 percent, as measured by the cut-off portfolio
balance.
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 $258.5 million, which
is lower than the arranger's NCF by 6.7 percent;
-- Weighted-average current and amortizing debt service coverage ratios(
DSCRs) of 2.09x and 1.91x, respectively, based on the actual loan
payment terms;
-- A portfolio-weighted average cap rate of 7.8 percent;
-- An aggregate pool value of approximately $3.33 billion, 21.9 percent
lower than the reported aggregated appraised values; and
-- Beginning and ending portfolio loan-to-value (LTV) ratios of 70.2
percent and 63.1 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, Loan Analysis Summary Table, 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.
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Media Contact:
Michelle Weiss, +1 267-960-6014 or michelle.weiss@morningstar.com
SOURCE Morningstar, Inc.
