Kroll Bond Rating Agency Assigns Preliminary Ratings to CGCMT 2012-GC8

NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings for the CGCMT 2012-GC8 transaction (see ratings list below). CGCMT 2012-GC8 is a $1.04 billion CMBS conduit transaction collateralized by 57 fixed rate commercial mortgage loans that are secured by 139 properties. The properties are located in 31 states and the three largest state concentrations include New York (31.4%), Texas (14.9%) and Florida (13.3%). The pool has exposure to three property types with concentrations in excess of 10%: office (44.2%), retail (19.6%) and lodging (17.4%).

KBRA’s analysis of the transaction incorporated our multi-borrower rating process that begins with our analysts' evaluation of underlying collateral properties' financial and operating performance, which determine KBRA’s estimate of sustainable net cash flow (KNCF) and KBRA value. The analysis incorporates a detailed evaluation of underlying collateral properties’ financial and operating performance using our CMBS Property Evaluation Guidelines to determine Kroll Net Cash Flow (KNCF), which is a key input used in our credit modeling process. On an aggregate basis, KNCF was 6.8% less than the issuer cash flow. KBRA capitalization rates were applied to each asset’s NCF to derive values that were, on an aggregate basis, 32.9% less than third party appraisal values. The pool has an in-trust KLTV of 94.8% and an all-in KLTV of 97.5%. The model deploys rent and occupancy stresses, probability of default regressions, and loss given default calculations to determine losses for each collateral loan, which are then used to assign our credit ratings.

For complete details on the analysis, please see our presale Report, CGCMT 2012-GC8, published today at www.krollbondratings.com.

The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.

Preliminary Ratings Assigned: CGCMT 2021-GC8
Class of Certificate	Expected KBRA Ratings	Class Balance ($)
A-1	AAA(sf)	$58,955,000
A-2	AAA(sf)	$181,568,000
A-3	AAA(sf)	$27,725,000
A-4	AAA(sf)	$379,626,000
A-AB	AAA(sf)	$80,273,000
X-A	AAA(sf)	$821,766,000
X-B	AAA(sf)	$218,444,520
A-S	AAA(sf)	$93,619,000
B	AA(sf)	$61,112,000
C	A(sf)	$39,008,000
D	BBB(sf)	$45,509,000
E	BB(sf)	$19,504,000
F	B(sf)	$19,504,000

* Notional Balance

17g7 Disclosure:

All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report entitled CGCMT 2012-GC8 17g-7 Disclosure Report.

Related Publications:

CMBS: U.S. CMBS Multi-Borrower Rating Methodology, published February 23, 2012
CMBS Property Evaluation Guidelines, published June 10, 2011

About Kroll Bond Rating Agency

Kroll Bond Rating Agency, Inc. (www.krollbondratings.com) is registered with the SEC as a nationally recognized statistical rating organization (NRSRO). Kroll Bond Rating Agency was established in 2010 to restore trust in credit ratings by establishing new standards for assessing risk and by offering accurate, clear, and transparent ratings.