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.

        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
Class   $300,000,000 AAA         n/a         n/a         n/a         n/a

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

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,
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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.


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Nadine Youssef, +1 312-696-6601 or

SOURCE Morningstar, Inc.

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