Kroll Bond Rating Agency Assigns Preliminary Ratings to RBS 2013-SMV Trust
NEW YORK -- January 29, 2013
Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of
preliminary ratings for the RBS 2013-SMV Trust transaction (see ratings list
below). RBS 2013-SMV Trust is a $295.0 million CMBS single borrower
The collateral for the securitization is comprised of a single, non-recourse,
first lien mortgage loan that is secured by the borrower’s fee simple interest
in [a 1.16 million sf] regional mall. The property, the Shops at Mission
Viejo, is located in Mission Viejo, California and features over 130 major and
in-line tenants that are predominately leased to national retailers. There are
three anchor tenants, including Macy’s Men’s, Macy’s Women & Home and
Nordstrom. The Macy’s stores own their own improvements and underlying land.
The mall is owned by the Borrower of the loan, the Shops at MV, LLC. The
borrower is owned in the form of a joint venture consisting of Simon Property
Group, L.P. (“SPGLP”), which has a 51% interest, and IMI Woodfield LLC, which
has a 49% interest. SPGLP is a subsidiary of Simon Property Group, Inc.
(“SPG”) and owns all of SPG’s real estate properties and other assets. SPG is
a publicly traded real estate investment trust (REIT). The property is managed
by Simon Management Associates, LLC, an affiliate of SPGLP. The collateral was
95.6% occupied as of December 1, 2012. Comparable in-line sales were $585 per
sf for the trailing 12 months ending September 2012, resulting in an occupancy
ratio of 13.4%.
KBRA’s analysis of the transaction included a detailed evaluation of the
property’s cash flow using our CMBS Property Evaluation Guidelines, and the
application of our CMBS Single Borrower and Large Loan Rating Methodology. The
results of our analysis yielded a KBRA Net Cash flow (KNCF) of $27.8 million.
To value the property, we applied a 7.50% capitalization rate to arrive at a
KBRA value of $370.2 million. Our resulting KBRA Loan to Value (KLTV) was
79.7%. In our analysis of the transaction, we also reviewed and considered
third party engineering and environmental reports, as well as our own on-site
inspection of the property and the competition.
For complete details on the analysis, please see our presale Report, [RBS
2013-SMV Trust], 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.
Preliminary Ratings Assigned: RBS 2013 SMV Trust
Class Expected Rating Balance
Class A AAA 179,000,000
Class X-A AAA 179,000,000
Class X-B AAA 56,000,000
Class B AA 28,000,000
Class C A 28,000,000
Class D BBB- 37,000,000
Class E BB+ 13,000,000
Class F BB+ 10,000,000
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 RBS 2013-SMV Trust.
Related publications (available at www.krollbondratings.com):
CMBS Single Borrower and Large Loan Rating Methodology
CMBS Property Evaluation Guidelines, published June 10, 2011
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
Leo Jacobo, 646-731-2325
Keith Kockenmeister, 646-731-2349
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