Kroll Bond Rating Agency Assigns Final Ratings to UBS-BAMLL Trust 2012-WRM

NEW YORK--(BUSINESS WIRE)-- Kroll Bond Rating Agency (KBRA) assigned its final ratings to seven classes of UBS-BAMLL Trust 2012-WRM certificates issued in a $415.0 million CMBS large loan transaction. Concurrently, we have withdrawn our preliminary ratings on the certificates, which were assigned on June 18, 2012 (see our ratings listed below).

The transaction is collateralized by two non-recourse first lien mortgage loans; however the loans are not cross-collateralized or cross-defaulted. Each loan is secured by a super-regional mall that is owned and managed by <org value="ACORN:3480028636" idsrc="xmltag.org">Westfield America Inc. or its affiliates. The larger of the two loans has a balance of $275.0 million and is secured by the borrower’s fee simple and leasehold interests in 678,494 sf of Galleria at Roseville, a 1.3 million sf super-regional mall located in Roseville, California. The second loan has a balance of $140.0 million and is secured by the borrower’s fee simple interest in 616,591 sf of MainPlace Mall, a 1.1 million sf super-regional mall located in Santa Ana, California.

KBRA’s analysis of the transaction included a detailed evaluation of each mall's cash flow using our CMBS Property Evaluation Guidelines and the application of our CMBS Single Borrower & Large Loan Rating Methodology. To value the properties, we selected capitalization rates of 8.0% and 8.75% for the Galleria at Roseville and MainPlace Mall, respectively. The results of our analysis yielded an aggregate KBRA Net Cash Flow (KNCF) of $51.4 million and KBRA value of $622.8 million. The resulting KBRA Loan to Value (KLTV) was 66.6% and the KBRA Debt Service Coverage during the term (KDSCt) was 2.88x. Our analysis of the transaction also included an evaluation of third party engineering and environmental reports, as well as our site inspections of the properties and their competitors.

For complete details on the analysis, please see our Presale Report, UBS-BAMLL Trust 2012-WRM, published at www.krollbondratings.com.

Final Ratings Assigned: UBS-BAMLL Trust 2012-WRM
Class			Expected Rating			Balance (US$)
A			AAA (sf)			$284,000,000
X-A			AAA (sf)			$284,000,000*
X-B			AAA (sf)			$131,000,000*
B			AA (sf)			$43,000,000
C			A (sf)			$36,000,000
D			BBB (sf)			$39,000,000
E			BBB- (sf)			$13,000,000
*Notional Amount

Related publications:
UBS-BAMLL Trust 2012-WRM Pre-Sale Report
UBS-BAMLL Trust 2012-WRM 17g7 Disclosure Report
CMBS Property Evaluation Guidelines, published June 10, 2011
CMBS Single Borrower & Large Loan Rating Methodology, published August 8, 2011

About Kroll Bond Rating Agency

KBRA was established in 2010 by Jules Kroll to restore trust in credit ratings by creating new standards for assessing risk and by offering accurate, clear and transparent ratings. KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

Analytical Contacts:
Kroll Bond Rating AgencyJereme Koons, 646-731-2306
[email protected]
orKeith Kockenmeister, 646-731-2349
[email protected]

Source: Kroll Bond Rating Agency