NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to six classes of Harvest Commercial Capital Loan Trust 2019-1 (HCCLT 2019-1) mortgage-backed certificates.
HCCLT 2019-1 is a $266.6 million securitization collateralized by 191 small balance commercial mortgage loans, primarily made to small business concerns (SBC) and secured by owner-occupied commercial real estate properties. The majority of the loans (140 loans, 75.7% of the total pool balance) were recently originated by Harvest Commercial Capital, LLC in conjunction with the firm’s Conventional (86, 53.0%) and 504 (54, 22.8%) programs, while the remaining loans (51, 24.3%) were purchased in a portfolio acquisition of collateral previously securitized in General Electric Capital Corporation (GECC) transaction. With the exception of seven floating-rate loans (3.5%), the pool is comprised of fixed rate mortgages. However, 138 (75.2%) of the 184 fixed rate loans provide for a single adjustment to the interest rate after the 60th mortgage payment, in each case following an initial fixed-rate period and does not adjust thereafter. The loans have an average outstanding principal balance of $1.4 million which range from $76,279 (0.03%) to $8.5 million (3.2%). The pool has a weighted average LTV of 51.4% based on third party appraisals and broker price opinion (BPO) data. FICO scores were provided for all of the loan guarantors, with the exception of 50 of the seasoned GECC originated loans (23.9%). The weighted average FICO, excluding these 50 loans, was 727.
The underlying properties are located in or near 69 Core Based Statistical Areas (CBSAs) across 32 states. The underlying assets are largely comprised of warehouse/industrial (61 assets, 38.1% of total pool balance), retail (37 assets, 18.0%), office (36 assets, 13.9%), and lodging (six assets, 6.2%). The remaining 23.9% is comprised of a variety of assets including schools, mixed-use, a multifamily, self-storage, a funeral home, vineyards, storage yards, trucking and tow yards, auto parking lots and a roller-skating rink.
KBRA relied on its CMBS and ABS methodologies in order to analyze the transaction. For complete details on the analysis, please see our pre-sale report, Harvest Commercial Capital Loan Trust 2019-1 published at www.kbra.com. The preliminary ratings are based on information known to KBRA at the time of publication. Information received subsequent to this release could result in the assignment of ratings that differ from the preliminary ratings.
To access ratings, reports and disclosures, click here.
Related Publications: (available at www.kbra.com)
- Harvest Commercial Capital Loan Trust 2019-1 Pre-Sale Report
- U.S. CMBS Property Evaluation Methodology
- U.S. CMBS Multi-Borrower Rating Methodology
- Methodology for Rating Interest-Only Certificates in CMBS Transactions
- Global Structured Finance Counterparty Methodology
- Global General Rating Methodology for Asset-Backed Securities
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KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization 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, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
Teena Andrade, Associate
Ravish Kamath, Director
John Lampasona, Director
Nitin Bhasin, Senior Managing Director
Michele Patterson, Managing Director