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KBRA Assigns Preliminary Ratings to BDS 2021-FL9

·3 min read

NEW YORK, September 28, 2021--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings to seven classes of BDS 2021-FL9, a fully ramped $746.6 million managed CRE CLO with a two-year reinvestment period.

The transaction will initially be collateralized by 31 whole loans (or participations therein). During the first 24 months of the transaction’s life (the reinvestment period), principal proceeds received with respect to the mortgage assets can be reinvested in new assets or to acquire funded companion participations, provided the reinvestment criteria are satisfied and the assets meet certain specified eligibility criteria. These criteria include, among other things, maximum stabilized LTV and minimum stabilized DSC requirements; pool level concentration limits for property type and geographic location; certain requirements related to participation interests; caps on the amount of related future funding obligations on an asset level and pool level basis; and the requirement that the rating condition is satisfied with respect to KBRA for each such newly acquired asset. The transaction also provides the sponsor with the ability to effectuate modifications to performing loans subject to certain restrictions and criteria, and dispose of loans at par under certain circumstances.

This transaction also includes an interest coverage (IC) test and a par value (also known as an overcollateralization, or OC) test (the note protection tests). If either test is not satisfied on any determination date, on the following payment date, interest proceeds remaining after interest is paid to the Class E notes will be used to pay down the principal balances of the Class A through E notes in sequential order until the tests are satisfied, or the Class A through E notes are paid in full. If available interest proceeds are insufficient to satisfy the tests or pay down the applicable classes of notes, available principal proceeds will be used for such purpose.

Click here to view the report. To access ratings and relevant documents, click here.

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Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority pursuant to the Temporary Registration Regime. 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.

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Analytical Contacts

Caitlin Parrella, CFA, Director (Lead Analyst)
+1 (646) 731-3310

Michael B. Brown, Managing Director
+1 (646) 731-2307

Mimi Ophir, Director
+1 (646) 731-3383

Nitin Bhasin, Senior Managing Director (Rating Committee Chair)
+1 (646) 731-2334

Business Development Contact

Michele Patterson, Managing Director
+1 (646) 731-2397

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