KBRA Assigns Preliminary Scores to NCMF 2022-MFP

NEW YORK–(BUSINESS WIRE)–KBRA is pleased to announce the assignment of preliminary ratings to seven classes of NCMF 2022-MFP, a single borrower CMBS securitization.

Collateral for the transaction is a $346.0 million non-recourse first mortgage. The variable rate loan has an initial two-year term with three one-year extension options and requires monthly interest-only payments. The loan is secured by the borrower’s fee simple interest in 11 multi-family workforce housing units and one student housing unit totaling 2,746 units. The properties range in size from 52 to 773 units and were built between 1929 and 2021 with an average age of 47 years. The properties are located in six different states across six MSAs. These MSAs include Indianapolis (41.3% of ALA), Dallas – Fort Worth (19.9%), Nashville (14.5%), Boone, North Carolina (11.6%), Las Vegas (9 .6%) and Los Angeles (3.2%).

KBRA’s analysis of the transaction included a detailed property cash flow assessment using our US CMBS property valuation methodology and application of our US CMBS Single Borrower & Large Loan rating methodology. In addition, KBRA has also relied on its global structured finance counterparty methodology to assess counterparty risk in this transaction and its global ESG rating methodology, to the extent deemed applicable.

The results of our analysis yielded a KBRA Net Cash Flow (KNCF) of $22.3 million, 2.6% less than the issuer’s NCF, and a KBRA value of approximately $278.4 million. dollars, or 40.3% less than the overall assessment value of the properties. The resulting in-trust KBRA Loan to Value (KLTV) is 124.3%. In our analysis of the transaction, we also reviewed and considered third party engineering, environmental, seismic and valuation reports; the results of our site inspections; and review of legal documentation.

Click here to see the report. To access relevant notes and documents, click here.

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Disclosures

Further information on key credit considerations, sensitivity analyzes that consider factors that may affect these credit ratings and how they could lead to an upgrade or downgrade, and ESG factors (where they are a key factor in changing the credit rating or rating outlook) can be viewed in the full rating report mentioned above.

A description of all substantially significant sources that were used to prepare the credit rating and information on the methodology(ies) (including all significant models and sensitivity analyzes of key relevant rating assumptions, if any) used to determine the credit rating are available. in the information disclosure form(s) located here.

Information on the meaning of each rating category can be found here.

Additional information relating to this rating metric is available in the information disclosure form(s) referenced above. Additional information regarding KBRA’s policies, methodologies, grading scales and disclosures is available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a rating agency with the UK Financial Conduct Authority under the temporary registration scheme. In addition, KBRA is designated as the Designated Rating Agency by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating provider.

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