Kroll Bond Rating Agency (KBRA) releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the April 2021 servicer reporting period. The April delinquency rate fell to 5.6%, down from 5.9% in March. This is the 10th consecutive month where the rate has declined or was flat from the previous month since peaking in June 2020, at 8.2%.
Most property categories, with the exception of mixed-use, showed a lower delinquency rate in April. Multifamily recorded the highest delinquency decrease (120 basis points- bps), followed by lodging (70 bps) and retail (30 bps). The mixed-use delinquency rate increased 70 bps, to 6.2% from 5.5% last month. A look at the conduit universe showed that delinquencies declined to 6.8%, down 30 bps from the March delinquency rate of 7.1%. The amount of conduit loans in special servicing ($19.7 billion) remained unchanged.
In this month’s edition, we include tables of all KBRA-rated SASB and LL mall (22) and lodging (15) transactions. Of these transactions, nine SASB and LL mall transactions and five lodging transactions have had COVID related relief granted in the form of forbearances, modifications and/or loan maturity extensions. Notably, COVID related relief has not been reported on the remaining 55 SASB and LL transactions which are secured by a variety of property types.
Click here to view the report.
KBRA is a full-service credit rating agency registered in the U.S., the EU and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.
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