NEW YORK, Aug. 12, 2014 /PRNewswire/ -- Morningstar Credit Ratings, LLC today assigned preliminary ratings for the commercial mortgage-backed securities (CMBS) transaction BBCMS Trust 2014-BXO, Commercial Mortgage Pass-Through Certificates, Series 2014-BXO (BBCMS 2014-BXO). The preliminary ratings are based on information known to Morningstar as of Aug. 12, 2014.



    PRELIMINARY RATINGS (AS OF AUG. 12, 2014)
    ----------------------------------------

           Class                  Balance/ Notional Amt.        Preliminary Ratings Morningstar DSCR     Morningstar BLTV        Morningstar ELTV        Credit Support Levels

    Class A                                        $146,400,000          AAA              3.08x                           42.75%                  42.75%                  58.76%

    Class X                                        $146,400,000          TBD               TBD                               N/A                     N/A                     N/A

    Class B                                         $55,700,000           NR                         N/A                     N/A                     N/A                     N/A

    Class C                                         $28,870,000           NR                         N/A                     N/A                     N/A                     N/A

    Class D                                         $35,420,000           NR                         N/A                     N/A                     N/A                     N/A

    Class E                                         $48,120,000           NR                         N/A                     N/A                     N/A                     N/A

    Class F                                         $40,490,000           NR                         N/A                     N/A                     N/A                     N/A
    -------                                         -----------          ---                         ---                     ---                     ---                     ---


    NR - Not Rated

The key characteristics of the mortgage loan collateral supporting BBCMS 2014-BXO are:


    --  A single floating-rate, interest-only, commercial mortgage loan with an
        initial two-year term and subject to three one-year extension options.
        The mortgage loan is secured by the borrower's fee simple interest in a
        cross-collateralized portfolio of nine office properties;
    --  The properties in the portfolio aggregate 1.8 million square feet and
        are located in six distinct markets in California, Virginia, Florida,
        and Colorado;
    --  The principal balance of the mortgage loan, which is collateral for the
        trust, is $355.0 million; and
    --  There is subordinate debt included in the transaction of $45.0 million
        of mezzanine financing.

Based on information provided on the arranger's website, Morningstar's analysis of the loan yielded the following Morningstar metrics:


    --  A net cash flow (NCF) of $27.4 million, which is lower than the
        arranger's NCF by 9.4 percent;
    --  The Morningstar debt service coverage ratio (DSCR) is 1.27x based on the
        actual loan interest rate of 6.1 percent;
    --  Morningstar valued the portfolio at $342.4 million using a
        weighted-average capitalization rate of 8.0 percent; and
    --  The Morningstar value is 35.1 percent lower than the appraised value of
        $527.8 million. The Morningstar value resulted in a weighted-average
        beginning loan/value (LTV) ratio of 103.7 percent.

For complete details about the preliminary ratings for this transaction, Morningstar's Transaction Analysis Package, including the Presale Report and the Representations, Warranties, and Enforcement Mechanisms, is available under the Ratings Reports tab on https://ratingagency.morningstar.com. Information subsequently received could result in the assignment of final ratings that differ from the preliminary ratings.

About Morningstar Credit Ratings, LLC and Morningstar, Inc.
Morningstar Credit Ratings, LLC is a Nationally Recognized Statistical Rating Organization (NRSRO) that specializes in structured credit research and ratings and offers a wide array of services including new-issue ratings and analysis, operational risk assessments, surveillance services, data, and technology solutions.

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SOURCE Morningstar, Inc.