KBRA Assigns Preliminary Ratings to TRTX 2018-FL2

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of
preliminary ratings to seven classes of TRTX 2018-FL2, a $1.0 billion
managed commercial real estate collateralized loan obligation (CRE CLO)
securitization. The transaction will initially be collateralized by 23
pari passu interests in mortgage loans and two whole loans, which are
secured by 122 properties. The collateral consists of both
non-controlling interests (22 loans, 87.3%) and controlling interests
(3, 12.7%) in the related mortgage loans.

The subject transaction includes a 24-month reinvestment period during
which previously unidentified whole loans and senior participations can
be acquired using principal proceeds received from the mortgage assets.
In all cases, each reinvestment asset must satisfy the eligibility
criteria and the reinvestment criteria. The eligibility criteria
includes, among other things, maximum stabilized LTV and minimum
stabilized DSC requirements; pool level concentration limits for loan
size, property type, and geographic location; certain restrictions on
participation interests and future funding assets; and that the rating
condition must be satisfied with respect to KBRA.

KBRA’s analysis of the transaction involved a detailed evaluation of the
underlying cash flows using our U.S. CMBS Property Evaluation
Methodology and the application of our U.S. CMBS Multi-Borrower Rating
Methodology. The analysis resulted in KBRA’s values to be, on average,
41.4% and 50.8% lower than the appraiser’s as-is values and stabilized
values, respectively. The resulting in-trust KBRA Loan to Value (KLTV),
assuming that all the future funding commitments are fully funded, was
126.9%. We also conducted scenario analyses to evaluate and incorporate
the impact of the transaction’s various structural features in our
ratings assignment process.

For complete details on the analysis, please see our pre-sale report, TRTX
published at www.kbra.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 ratings that differ from the
preliminary ratings.

Preliminary Ratings Assigned: TRTX 2018-FL2

Class       Initial Note Balance       Expected KBRA Rating
A       $505,084,000       AAA(sf)
A-S       $85,015,000       AAA(sf)
B       $62,510,000       AA-(sf)
C       $66,261,000       A-(sf)
D       $76,263,000       BBB-(sf)
E       $48,758,000       BB-(sf)
F       $28,755,000       B-(sf)
Preferred Shares       $127,521,818       NR

To access ratings, reports and disclosures, click here.

Related Publications: (available at www.kbra.com)




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About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S.
Securities and Exchange Commission as an NRSRO. 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, is recognized by the National
Association of Insurance Commissioners as a Credit Rating Provider, and
is a certified Credit Rating Agency (CRA) by the European Securities and
Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is
registered with ESMA as a CRA.


Aaron Reed, Director
Brown, Senior Director
(646) 731-2307
Bhasin, Senior Managing Director
(646) 731-2334
Carley, Senior Director
(646) 731-2391


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