The collateral for the transaction consists of eight first-lien mortgage loans secured by a total of 59 properties. The loans have principal balances ranging from
KBRA’s analysis of the transaction involved a detailed evaluation of the underlying cash flows using our CMBS Property Evaluation Guidelines and the application of our CMBS Single-Borrower & Large Loan Rating Methodology. The results of the analysis yielded KNCF for the underlying collateral properties that was, on average, 4.7% less than issuer cash flow. KBRA applied our stressed capitalization rates to KNCF to arrive at valuations of the underlying properties. The KBRA values were, on average, 40.1% less than the appraiser’s as-is valuation. The resulting KBRA in-trust Loan to Value (KLTV) was 85.0%, and the all-in KLTV was 147.6%. As part of our analysis of the transaction, we also reviewed and considered third party engineering and environmental reports, our analysts’ site visits of the collateral properties, and the transaction structure.
Preliminary Ratings Assigned: GSMS 2014-GSFL
1 Notional amount.
Related publications (available at www.krollbondratings.com):
CMBS: GSMS 2014-GSFL Pre-Sale Report
CMBS: Single Borrower & Large Loan Rating Methodology, published
CMBS Property Evaluation Guidelines, published
KBRA is registered with the