Morningstar Credit Ratings Assigns Preliminary Ratings for Morgan Stanley Capital I Trust 2014-CPT, Commercial Mortgage Pass-Through Certificates, Series 2014-CPT (MSCI 2014-CPT) - AZTV7/Cable 13, Me-TV 7.2, HSN 7.3, Phoenix-Prescott, AZ

Morningstar Credit Ratings Assigns Preliminary Ratings for Morgan Stanley Capital I Trust 2014-CPT, Commercial Mortgage Pass-Through Certificates, Series 2014-CPT (MSCI 2014-CPT)

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SOURCE Morningstar, Inc.

NEW YORK, July 15, 2014 /PRNewswire/ -- Morningstar Credit Ratings, LLC today assigned preliminary ratings for the commercial mortgage-backed securities (CMBS) transaction Morgan Stanley Capital I Trust 2014-CPT, Commercial Mortgage Pass-Through Certificates, Series 2014-CPT (MSCI 2014-CPT). The preliminary ratings are based on information known to Morningstar as of July 15, 2014.

PRELIMINARY RATINGS (AS OF JULY 15, 2014)

Class

Balance/

Notional Amt.

Preliminary

Ratings

Morningstar
DSCR

Morningstar
BLTV

Morningstar
ELTV

Credit Support
Levels

Class A

$415,000,000

AAA

4.24x

47.8%

47.8%

40.00%

Class X-A

$480,000,000

AAA

4.24x

48.6%

48.6%

40.00%

Class X-B

$105,000,000

AA-

3.99x

50.8%

50.8%

36.25%

Class A-M

$65,000,000

AAA

4.24x

47.8%

47.8%

40.00%

Class B

$30,000,000

AA-

3.99x

50.8%

50.8%

36.25%

Class C

$75,000,000

A-

3.48x

58.3%

58.3%

26.88%

Class D

$50,000,000

BBB

3.21x

63.3%

63.3%

20.63%

Class E

$40,000,000

BBB-

3.02x

67.3%

67.3%

15.63%

Class F

$80,000,000

BB

2.70x

75.2%

75.2%

5.63%

Class G

$45,000,000

BB-

2.55x

79.7%

79.7%

0.00%

Class R

N/A

NR

N/A

N/A

N/A

N/A

NR – Not Rated

The key characteristics of the mortgage loan collateral supporting MSCI 2014-CPT are:

  • A single-borrower, fixed-rate, seven-year term mortgage loan secured by the borrower's fee simple interest in Century Plaza Towers, a 2.43 million-square-foot office development in the Century City submarket of Los Angeles, Calif.;
  • The principal balance of the mortgage loan, which is collateral for the trust, is $800.00 million; and
  • The borrower on the loan is One Hundred Towers, LLC, a Delaware limited liability company, which is owned by J.P. Morgan Asset Management and a joint venture consisting of an institutional investor advised by Hines and Hines Investment Holdings Limited Partnership, a privately owned, international real estate firm.

Based on information provided on the arranger's website, Morningstar's analysis of the loan yielded the following Morningstar metrics:

  • A net cash flow (NCF) of $70.25 million, which is lower than the arranger's NCF by 6.50 percent;
  • The Morningstar debt service coverage ratio (DSCR) is 2.55x based on the actual interest rate of 3.45 percent;
  • Morningstar valued the property at $1.00 billion using a capitalization rate of 7.00 percent; and
  • The Morningstar value, which equates to $433 per square foot, is 39.40 percent lower than the appraised value of $1.66 billion. The Morningstar value resulted in a loan-to-value (LTV) ratio of 79.70 percent for the first mortgage loan.

For complete details about the preliminary ratings for this transaction, Morningstar's Presale Analysis Package, including the Presale Report and the Representations, Warranties, and Enforcement Mechanisms, is available under the "Ratings Reports" tab on https://ratingagency.morningstar.com. 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 456,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 12 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 investment advisory subsidiaries and had approximately $164 billion in assets under advisement and management as of March 31, 2014. 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 Contact:
Michelle Weiss, +1 267-960-6014 or michelle.weiss@morningstar.com

©2012 PR Newswire. All Rights Reserved.

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