NEW YORK–(COMMERCIAL THREAD) – Kroll Bond Rating Agency (KBRA) announces preliminary ratings assigned to eight classes of Motel 2021-MTL6, a CMBS single-borrower securitization.
The collateral for the transaction is a $ 685.0 million non-recourse first mortgage. The variable rate loan has an initial term of two years with three options for one year extension and requires monthly interest payments based solely on one month’s LIBOR. The loan is secured by borrowers’ fee simple interest in 100 lodging properties totaling 12,415 keys and leasehold interest in six hotels totaling 741 keys, all operating under Motel 6 and Studio 6 flags located in 12 states. For the period TTM 6/2021, the portfolio occupancy rate was 57.9% with an average daily rate (ADR) of $ 72.09, resulting in revenue per available room (RevPAR) of $ 41.74 .
KBRA’s transaction analysis included a detailed valuation of property cash flows using our US CMBS property valuation methodology and the application of our US CMBS Single Borrower rating methodology. & Large Loan Rating. In addition, KBRA also relied on its overall structured finance counterparty methodology to assess the counterparty risk in this transaction and its overall ESG rating methodology, to the extent deemed applicable.
The results of our analysis yielded a KBRA Net Cash Flow (KNCF) for the portfolio of approximately $ 66.0 million, or 7.9% less than the issuer’s NCF, and an aggregate value of KBRA approximately $ 550.1 million ($ 41,817 per key), or 40.0%. less than the appraiser’s wholesale market value of $ 916.5 million ($ 69,664 per key) assuming the wallet is sold together in a single transaction to a single buyer. The resulting KBRA Loan to Value (KLTV) trust is 124.5%. In our analysis of the transaction, we have also reviewed and taken into account third party technical, environmental and valuation reports; the results of our on-site property inspections and review of legal documentation.
Click here to view the report. To access the assessments and relevant documents, click here.
Further information on key credit considerations, sensitivity analyzes that examine the factors that may affect these credit ratings and how they might lead to an improvement or a downgrade, and ESG factors (when they are a factor). key to the change in credit rating or rating outlook) can be found in the full assessment report mentioned above.
A description of all substantially significant sources that were used to prepare the credit rating and information about the method (s) (including significant models and sensitivity analyzes of the relevant key rating assumptions, if any) used to determine The credit rating is available in the Information Disclosure Form (s) located here.
Information on the meaning of each rating category can be found here.
Further information relating to this rating measure is available in the information disclosure form (s) referenced above. Additional information regarding KBRA’s policies, methodologies, rating scales and disclosures are available at www.kbra.com.
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a credit rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a credit rating agency with the UK Financial Conduct Authority under the temporary registration regime. In addition, KBRA is appointed as the designated rating agency by the Ontario Securities Commission for issuers of asset-backed securities to file a simplified prospectus or a shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating provider.