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Morningstar strives to provide the marketplace with independent, transparent, through-the-credit-cycle credit analysis and ratings of CMBS securities. To achieve this objective we employ the combination of an extensive proprietary database that tracks and analyzes historical CMBS loan performance, a dedicated team of real estate analysts and loan underwriters, a quantitative CMBS subordination model, and access to a wide array of third party commercial real estate market data.
  New Issue CMBS Ratings and Analysis
Morningstar utilizes a transparent, bottom-up approach to rating CMBS securities that blends qualitative, quantitative, and legal analysis of the loan, portfolio and issuing trust. Our analysis of a CMBS transaction begins with underwriting a representative sample of the loans that collateralize the transaction to determine the stabilized net cash flow and estimated value of each property analyzed. We then utilize a proprietary, empirically based CMBS subordination model to quantitatively translate the results of our loan-by-loan analysis into subordination requirements at each rating category. Concurrently, we engage the services of external legal counsel to assist with identifying structural issues at the loan and trust levels that introduce additional credit risk. Such risks are then quantified and addressed in the loan analysis and/or subordination modeling exercises. The end result of our analysis is a CMBS letter rating for each class of the transaction and a comprehensive presale report that includes in-depth loan and property analysis.
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  CMBS Services Product Information Sheet
  CMBS Surveillance Ratings and Analysis
Our CMBS Surveillance services are designed for portfolio managers, analysts and traders in the commercial mortgage-backed securities market. The CMBS Workstation is a web-based surveillance tool that provides access to Morningstar’s proprietary credit analysis on thousands of CMBS securities, along with state-of-the-art features for tracking portfolio, bond and collateral level performance.

Our surveillance process ensures timely reporting on new credit events affecting CMBS, and results in ratings and analysis that are up-to-date, stable, and accurate. Each month, Morningstar conducts a thorough quantitative and qualitative analysis on the underlying loans and properties that collateralize a CMBS transaction to produce an estimated property value and loss estimate for each loan. The results of the collateral analysis are then applied to the class structure of the transaction to determine the impact of the loss projections on each class of the CMBS transaction. Updated collateral statistics are analyzed on a monthly basis by the CMBS surveillance analysts to ensure that estimates of collateral value and corresponding loss forecasts reflect changes in loan workout status, collateral performance, and market conditions. Our loan and property-level analysis includes a review of operating cash flow, tenant base, property condition, and market performance. The result of our monthly analysis is the Morningstar CMBS DealViewSM, which provides a comprehensive credit analysis for each CMBS transaction that is covered by Morningstar. If the transaction is rated by Morningstar, the CMBS DealViewSM will also include the most recent Morningstar letter ratings.
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  CMBS Services Product Information Sheet CMBS DealView Sample Report
  CMBS Web Services Ratings Feed
The CMBS Web Services Ratings Feed provides a standard, secure means of interoperating between third-party software applications and Morningstar’s CMBS database for easy access to CMBS ratings information. With the CMBS Web Services Ratings Feed you can effectively integrate Morningstar’s CMBS ratings with proprietary or third-party systems for portfolio management, accounting or compliance.
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  CMBS Web Services Ratings Feed Product Information Sheet
  CMBS Re-Remic/CDO Analysis
Our Re-Remic/CDO analysis helps investors and collateral managers monitor and analyze portfolio holdings of re-securitizations. The Re-Remic/CDO service includes Morningstar’s independent outlooks and analysis on the performance of the securitizations.
Click the links below to see more:
  CMBS Services Product Information Sheet