KBRA Releases Research – CMBS Loan Performance Trends: January Update

NEW YORK–() – The Kroll Bond Rating Agency (KBRA) publishes a report on the performance trends of US commercial mortgage-backed securities (CMBS) lending observed during the January 2021 reporting period. default for the period was unchanged month-over-month, at 6.5%, among KBRA-rated CMBSs.

This is the seventh month in a row that delinquencies have declined or remained stable from their peak of 8.2% in June. However, other loan performance indicators have trended slightly negative this month, illustrating the lingering economic effects of the COVID-19 pandemic on commercial real estate markets. For example, the rate of delinquency and special services for housing increased to 22.9%, compared to 22.4% from the previous month. In addition, the rate on loans classified as less than 30 days past due rose 60 basis points MoM in January, to 2.6%. This statistic is a general precursor of loans that will be identified as past due in the next payment period, meaning a higher probability that we could see an increase in pipeline defaults in February. This month, in addition to the usual reports, KBRA provides some notable data points on loans transferred to special services to provide context for how CRE has behaved during the pandemic, in particular the low level of loans. specially managed have been corrected and returned to the primary manager.

Click on here to view the report.

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the United States Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating agency by the Ontario Securities Commission for issuers of asset-backed securities to file a simplified prospectus or a shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating provider and is a credit rating agency (ARC) accredited with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe is registered with ESMA as CRA. Kroll Bond Rating Agency Europe is located at 6-8 College Green, Dublin 2, Ireland.

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