News Column

Kroll Bond Rating Agency Upgrades and Affirms Ratings on COMM 2011-FL1

January 24, 2014

NEW YORK --(BUSINESS WIRE)-- Kroll Bond Rating Agency (KBRA) recently completed a full surveillance review of COMM 2011-FL1, a CMBS large loan transaction. In conjunction with the review, we have upgraded three classes due to the deleveraging of the trust. Class B was upgraded to AAA, Class C was upgraded to AA and Class D was upgraded to A. The remaining ratings were affirmed. Concurrently, we have removed the Watch Upgrade status associated with Classes B, C and D, as well as the Watch Developing status associated with Classes E and F. In September 2013 , the servicer remittance report indicated that the borrower for the One Kendall Square loan intended to repay the loan in full prior to its maturity date in December 2013 . Following the receipt of the remittance report, KBRA conducted an analysis of the transaction using information from the certificate administrators website. The analysis resulted in the aforementioned Watch status placements on October 24, 2013 pending the receipt of additional performance information from the master servicer. The information was subsequently received and used along with trustee data to complete this transaction review. As of the December 2013 remittance report, the One Kendall Square Loan was repaid in full, leaving the $113.0 million Standard Hotel loan as the remaining trust collateral. The Standard Hotel is a 337-key, full-service boutique hotel located in the Meatpacking District of downtown New York City . KBRA used information obtained from the trustee and servicer to analyze The Standard Hotel loan. The analysis produced a KBRA Net Cash Flow (KNCF) of $17.4 million and a KBRA value of $165.4 million , each of which reflects a 2.5% increase since our October 2012 review and a 2.7% decline since securitization. The resulting in-trust KBRA Loan to Value (KLTV) is 68.3%. Class Rating Balance (USD) Rating Action A AAA (sf) 31,381,145 Affirmed X (1) AAA (sf) 113,000,000 Affirmed B AAA (sf) 20,158,834 Upgrade C AA (sf) 21,633,902 Upgrade D A (sf) 13,521,027 Upgrade E BBB- (sf) 17,209,021 Affirmed F BB (sf) 9,096,070 Affirmed 1 Notional Class Related Publications (available at https://www.krollbondratings.com ): COMM 2011-FL1 Surveillance Report ( October 2012 ) COMM 2011-FL1 Pre-Sale Report CMBS Single Borrower and Large Loan Rating Methodology CMBS Property Evaluation Guidelines About Kroll Bond Rating Agency KBRA was established in 2010 by Jules Kroll to restore trust in credit ratings by creating new standards for assessing risk and by offering accurate, clear and transparent ratings. KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP). Kroll Bond Rating Agency Allison Werry , 646-731-2335 awerry@kbra.com or Adam Greenspan Haya , 646-731-2339 ahaya@kbra.com or Sarah Woo , 646-731-2361 swoo@kbra.com or Michael Haas , 215-882-5859 mhaas@kbra.com Source: Kroll Bond Rating Agency


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