NEW YORK–(BUSINESS WIRINGKroll Bond Rating Agency (KBRA) announces provisional ratings for nine MHP Commercial Mortgage Trust 2021-STOR grades, securitizing individual borrowers CMBS.
The transaction is secured by a non-recourse mortgage loan in the amount of USD 468.0 million. The floating rate loan has an initial term of two years with three renewal options for one year and requires monthly payments of interest only based on the one-month LIBOR rate. The loan is secured by simple interest of the borrower for 57 warehouse premises. The total real estate portfolio is 4.0 million square feet, including 678,097 square feet of commercial and parking spaces, with assets ranging from 16,022 to 175,750 square feet. The property’s self-storage space is 3.3 million square feet (26,694 units) of total floor space, with self-storage space ranging from 13,682 square feet (100 units) to 113,419 square feet (1,125 square feet). Overall, 29.6% of the portfolio’s standard warehouses (24.6% of the total) are climate controlled. Properties are located in 23 different MSAs in 13 states, each representing more than 10.0% of the pool balance: New Jersey (20.1%), Virginia (13.0%), Maine (12.9%), and South Carolina (12.2%). %). The facilities were built between 1960 and 2014 and their average age is around 26 years. As of May 2021, the weighted average portfolio occupancy rate was 93.1%.
Analysis of the KBRA transaction included a detailed valuation of the property’s cash flows using our US CMBS Property Appraisal Methodology and the use of our US CMBS Single Borrower and Large Loan Rating Methodology… In addition, KBRA also relied on its Global structured finance methodology for counterparties to assess the counterparty risk for this transaction and its ESG Global Ranking Methodologyto the extent that it is deemed applicable.
Our analysis yielded KBRA (KNCF) net cash flow of $ 29.8M, 7.1% below the issuer’s NCF, and KBRA of approximately $ 337.7M, 45.8% below value. portfolio appraiser for this object. The total amount of the KBRA trust loan (KLTV) is 138.6%. In our analysis of the transaction, we also reviewed and reviewed third party reports on engineering, environmental and appraisal activities; the results of the inspection of our facility; and verification of legal documentation.
Additional information on the key aspects of creditworthiness, a sensitivity analysis that examines what factors can affect these credit ratings and how they can lead to an upgrade or downgrade, and ESG factors (where they are the key driving force behind a change in a credit rating or rating outlook) can be found in the full rating report referenced above.
A description of all material sources used to prepare the credit rating and information on the methodology (s) (including any significant models and sensitivity analysis of the related key rating assumptions, if applicable) used in determining the credit rating is available. in the Disclosure Forms located here…
Information on the meaning of each rating category can be found here…
Additional information disclosed in connection with this rating action is available in the disclosure form (s) referred to above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures is available at www.kbra.com…
Kroll Bond Rating Agency, LLC (KBRA) is a full service rating agency registered with the US Securities and Exchange Commission as the NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority under the Temporary Registration Regime. In addition, KBRA has been designated by the Ontario Securities Commission as the rating organization for issuers of asset-backed securities to file a short prospectus or a completed prospectus. KBRA is also recognized as a credit rating provider by the National Insurance Commissioners Association.