KBRA Assigns Ratings to Citigroup Commercial Mortgage Trust 2020-WSS

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of ratings to four classes of Citigroup Commercial Mortgage Trust 2020-WSS, a $413.25 million CMBS single-borrower transaction.

The collateral for the securitization consists of a $435.0 million non-recourse, first lien, floating-rate mortgage loan that is secured by the borrowers’ fee simple interests in 74 hotels totaling 8,876 keys. For the TTM 4/2020 period, the portfolio’s occupancy was 77.0% with an average daily rate (ADR) of $46.96, resulting in revenue per available room (RevPAR) of $36.17. The underlying collateral consists of 74 economy extended-stay properties operating under the WoodSpring Suites flag located in 26 states.

KBRA’s analysis of the transaction included a detailed evaluation of the properties’ cash flows using our U.S. CMBS Property Evaluation Methodology, and the application of our U.S. CMBS Single Borrower and Large Loan Rating Methodology. In addition, KBRA also relied on its Global Structured Finance Counterparty Methodology for assessing counterparty risk in this transaction, to the extent deemed applicable. The results of our analysis yielded a KBRA net cash flow (KNCF) for the portfolio of roundly $45.0 million. To value the portfolio, KBRA applied a blended capitalization rate of 11.99% to arrive at a KBRA value of $375.3 million. The resulting KBRA Loan-to-Value (KLTV) is 115.9%. In our analysis of the transaction, we considered the third-party engineering, environmental, seismic, and appraisal reports; management and franchise agreements; the results of our site inspections; and legal documentation.

Click here to view the report. To access ratings and relevant documents, click here.

Related Publications

• CGCMT 2020-WSS KBRA SASB KCAT
• U.S. CMBS Property Evaluation Methodology
• U.S. CMBS Single Borrower and Large Loan Rating Methodology
• Methodology for Rating Interest-Only Certificates in CMBS Transactions
• Global Structured Finance Counterparty Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the U.S. Information Disclosure Form located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the U.S. Information Disclosure Form referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

KBRA is a full-service credit rating agency registered as an NRSRO with the U.S. Securities and Exchange Commission. 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) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe is registered with ESMA as a CRA.

Contacts

Analytical


Laura Wolinsky, Senior Director (Lead Analyst)

+1 (646) 731-2379

lwolinsky@kbra.com

Keith Kockenmeister, Senior Managing Director

+1 (646) 731-2349

kkockenmeister@kbra.com

Michael Brown, Managing Director (Rating Committee Chair)

+1 (646) 731-2307

mbbrown@kbra.com

Susannah Keagle, Senior Director

+1 (646) 731-3357

skeagle@kbra.com

Business Development


Michele Patterson, Managing Director

+1 (646) 731-2397

mpatterson@kbra.com