Kroll Bond Rating Agency (KBRA) recently completed a full surveillance review of COMM 2011-FL1, a CMBS large loan transaction. In conjunction with the review, we have upgraded three classes due to the deleveraging of the trust. Class B was upgraded to 'AAA', Class C was upgraded to 'AA' and Class D was upgraded to 'A'. The remaining ratings were affirmed. Concurrently, we have removed the Watch Upgrade status associated with Classes B, C and D, as well as the Watch Developing status associated with Classes E and F.

In September 2013, the servicer remittance report indicated that the borrower for the One Kendall Square loan intended to repay the loan in full prior to its maturity date in December 2013. Following the receipt of the remittance report, KBRA conducted an analysis of the transaction using information from the certificate administrator's website. The analysis resulted in the aforementioned Watch status placements on October 24, 2013 pending the receipt of additional performance information from the master servicer. The information was subsequently received and used along with trustee data to complete this transaction review.

As of the December 2013 remittance report, the One Kendall Square Loan was repaid in full, leaving the $113.0 million Standard Hotel loan as the remaining trust collateral. The Standard Hotel is a 337-key, full-service boutique hotel located in the Meatpacking District of downtown New York City. KBRA used information obtained from the trustee and servicer to analyze The Standard Hotel loan. The analysis produced a KBRA Net Cash Flow (KNCF) of $17.4 million and a KBRA value of $165.4 million, each of which reflects a 2.5% increase since our October 2012 review and a 2.7% decline since securitization. The resulting in-trust KBRA Loan to Value (KLTV) is 68.3%.

                         
Class       Rating       Balance (USD)       Rating Action
A       AAA (sf)       31,381,145       Affirmed
X(1)       AAA (sf)       113,000,000       Affirmed
B      

AAA (sf)

      20,158,834       Upgrade
C       AA (sf)       21,633,902       Upgrade
D       A (sf)       13,521,027       Upgrade
E       BBB- (sf)       17,209,021       Affirmed
F       BB (sf)       9,096,070       Affirmed

1 Notional Class

Related Publications (available at https://www.krollbondratings.com):

COMM 2011-FL1 Surveillance Report (October 2012)
COMM 2011-FL1 Pre-Sale Report
CMBS Single Borrower and Large Loan Rating Methodology
CMBS Property Evaluation Guidelines

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).

Kroll Bond Rating Agency
Allison Werry, 646-731-2335
awerry@kbra.com
or
Adam Greenspan Haya, 646-731-2339
ahaya@kbra.com
or
Sarah Woo, 646-731-2361
swoo@kbra.com
or
Michael Haas, 215-882-5859
mhaas@kbra.com