KBRA Releases Research – Pandemic CMBS: Originating Through the Contagion

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) releases a report, which discusses trends in pre- and post-coronavirus loan originations included in 2020 multi-borrower CMBS securitizations. Our key findings include the following:

• Conduit lenders and Freddie Mac have increased the number of loans with debt service reserves.
• Retail and lodging exposures have decreased by approximately half in post-coronavirus conduits.
• Student and assisted living/independent living exposures have declined in K-Deals.
• Post-coronavirus conduits are showing slightly higher leverage and more amortization.
• Post-coronavirus K-Deal loan metrics have remained relatively consistent.

As discussed in the report, certain trends such as the above have become clear, but how long any of these trends continue remains to be seen and will be influenced by the depth of the recession and property performance.

Click here to view the report.

Related Publications

• CMBS Loan Performance Trends: August Update
• CRE Secular Trends Upended by Pandemic Disruptions

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. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe is registered with ESMA as a CRA. Kroll Bond Rating Agency Europe is located at 6-8 College Green, Dublin 2, Ireland.

Contacts

Analytical Contacts

Patrick McQuinn, Senior Director

+1 (646) 731-2445

pmcquinn@kbra.com

Nitin Bhasin, Senior Managing Director

+1 (646) 731-2334

nbhasin@kbra.com

Eric Thompson, Senior Managing Director

+1 (646) 731-2355

ethompson@kbra.com

Business Development Contact

Michelle Patterson, Managing Director

+1 (646) 731-2397

mpatterson@kbra.com