NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings to 13 classes of the WFRBS 2013-UBS1 transaction (see ratings listed below). WFRBS 2013-UBS1 is a $726.6 million CMBS conduit transaction collateralized by 57 fixed-rate commercial mortgage loans that are secured by 103 properties.
The loans have principal balances ranging from $1.2 million to $130.0 million for the largest loan in the pool. Four loan sellers, Wells Fargo Bank, National Association (23 loans, 48.4%), UBS Real Estate Securities Inc. (16 loans, 25.0%), Rialto Mortgage Finance, LLC (8 loans, 15.0%), and The Royal Bank of Scotland plc (10 loans, 11.6%) contributed the loans. The largest loan in the pool, The Outlet Collection | Jersey Gardens (17.9%), is secured by a 1.3 million sf outlet center that is located in Elizabeth, New Jersey. The five largest loans, which also include Sullivan Center (10.3%), Ocean Breeze Apartments (5.1%), Mazza Grandmarc (4.7%), and 9 Dollar General Portfolio (3.9%), represent 41.9% of the initial pool balance, while the top 10 loans represent 55.0%. The collateral properties are located in 27 different states, with two largest state exposures accounting for approximately 30.0% of the pool balance: New Jersey (17.9%) and Texas (11.7%). The pool has four property type exposures that each represent more than 10.0% of the pool balance: retail (30.6%), multifamily (19.8%), hospitality (13.0%) and mixed use (11.5%).
KBRA’s analysis of the transaction incorporated our multi-borrower rating process that begins with our analysts' evaluation of underlying collateral properties' financial and operating performance, which determine KBRA’s estimate of sustainable net cash flow (KNCF) and KBRA value using our CMBS Property Evaluation Guidelines. On an aggregate basis, KNCF was 3.3% less than the issuer cash flow. KBRA capitalization rates were applied to each asset’s KNCF to derive values that were, on an aggregate basis, 32.9% less than third party appraisal values. The pool has an in-trust KLTV of 91.3% and an all-in KLTV of 96.2%. The model deploys rent and occupancy stresses, probability of default regressions, and loss given default calculations to determine losses for each loan, which are then used to assign the credit ratings.
For complete details on the analysis, please see our Presale Report, WFRBS 2013-UBS1, published today at www.krollbondratings.com.
The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.
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Preliminary Ratings Assigned: WFRBS 2013-UBS1 |
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| Class | Expected Rating | Balance | ||||
| A-1 | AAA (sf) | $27,667,000 | ||||
| A-2 | AAA (sf) | $158,816,000 | ||||
| A-3 | AAA (sf) | $130,000,000 | ||||
| A-4 | AAA (sf) | $154,507,000 | ||||
| A-SB | AAA (sf) | $37,660,000 | ||||
| X-A | AAA (sf) | $555,882,000* | ||||
| X-B | AAA (sf) | $49,957,000* | ||||
| X-C | NR | $33,607,594* | ||||
| A-S | AAA (sf) | $47,232,000 | ||||
| B | AA- (sf) | $49,957,000 | ||||
| C | A-(sf) | $36,332,000 | ||||
| D | BBB- (sf) | $33,607,000 | ||||
| E | BB (sf) | $17,258,000 | ||||
| F | B (sf) | $11,808,000 | ||||
| G | NR | $21,799,594 | ||||
| * Notional Amount | ||||||
17g-7 Disclosure
All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report entitled WFRBS 2013-UBS1 17g-7 Disclosure Report.
Related publications (available at www.krollbondratings.com):
CMBS: U.S. CMBS Multi-Borrower Rating Methodology, published February 23, 2012
CMBS Property Evaluation Guidelines, published June 10, 2011
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