Morningstar Credit Ratings Assigns Preliminary Ratings for COMM 2014-BBG Mortgage Trust, Commercial Mortgage Pass-Through

   Morningstar Credit Ratings Assigns Preliminary Ratings for COMM 2014-BBG Mortgage Trust, Commercial Mortgage Pass-Through Certificates (COMM 2014-BBG)  PR Newswire  NEW YORK, March 10, 2014  NEW YORK, March 10, 2014 /PRNewswire/ -- Morningstar Credit Ratings, LLC today assigned preliminary ratings for the commercial mortgage-backed securities (CMBS) transaction COMM 2014-BBG Mortgage Trust, Commercial Mortgage Pass-Through Certificates (COMM 2014-BBG). The preliminary ratings are based on information known to Morningstar as of March 10, 2014.  PRELIMINARY RATINGS (AS OF MARCH 10, 2014)         Balance/     Preliminary Morningstar Morningstar Morningstar Credit Class                            DSCR        BLTV        ELTV        Support         Notional Amt Ratings                                         Levels Class A $300,000,000 AAA         3.72x       35.4%       35.4%       0.0% Class   $300,000,000 AAA         n/a         n/a         n/a         n/a X-CP Class   $300,000,000 AAA         n/a         n/a         n/a         n/a X-EXT  The key characteristics of the COMM 2014-BBG Mortgage Trust transaction are:    oA $300 million first-mortgage loan, which is secured by the fee simple     interest in two office condominium units located at 731 Lexington Avenue     in Midtown Manhattan;   oThe collateral includes a total of 904,573 square feet of office and     storage space. All of the office space is leased to and occupied by     Bloomberg L.P., which operates its world headquarters from this location;   oThe borrower on the loan is 731 Office One LLC, which is a Delaware     limited liability company indirectly owned by Alexander's, Inc.     Alexander's, Inc. is a real estate investment trust that is engaged in the     leasing, managing, developing, and redeveloping of its properties; and   oThe loan provides for a three-year initial term and four 12-month     extension options. Debt service is interest-only throughout the loan term     and interest is paid as a spread of 0.95 percent over the one-month LIBOR.  Based on information provided on the arranger's website, Morningstar's analysis of the loans yielded the following Morningstar metrics:    oNet cash flow (NCF) of approximately $56.05 million, which is lower than     the arranger's NCF by 4.0 percent;   oDebt service coverage ratio (DSCR) of 3.72x based on the 0.95 percent     interest rate spread and a stressed LIBOR rate of 4.0 percent;   oCapitalization rate of 6.5 percent; and   oMorningstar's valuation of the asset is $847.8 million, which is 30.8     percent lower than the appraised value. Morningstar's value reflects a     loan-to-value (LTV) ratio of 35.4 percent.  For complete details about the preliminary ratings of this transaction, Morningstar's Pre-Sale analysis package, including the Pre-Sale Report, Summary of Financial Results, and the Representations, Warranties, and Enforcement Mechanisms, is available under the "Ratings Reports" tab on Information subsequently received could result in the assignment of final ratings that differ from the preliminary ratings.  About Morningstar Credit Ratings, LLC and Morningstar, Inc. Morningstar Credit Ratings, LLC is a Nationally Recognized Statistical Rating Organization (NRSRO) that specializes in structured credit research and ratings, and offers a wide array of services including new-issue ratings and analysis, operational risk assessments, surveillance services, data, and technology solutions.  Morningstar Credit Ratings, LLC is a subsidiary of Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research in North America, Europe, Australia, and Asia.  Morningstar, Inc. offers an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. Morningstar provides data on approximately 446,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 10 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its registered investment advisor subsidiaries and had approximately $159 billion in assets under advisement and management as of Dec. 31, 2013. The company has operations in 27 countries.  Morningstar, Inc. is not an NRSRO and its credit ratings on corporate and municipal issuers are not NRSRO credit ratings.  ©2014 Morningstar, Inc. All Rights Reserved.  MORN-R  Media Contacts: Michelle Weiss, +1 267-960-6014 or Nadine Youssef, +1 312-696-6601 or  SOURCE Morningstar, Inc.  Website:  
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