KBRA Releases Study – CMBS Loan Performance Trends: September 2021


NEW YORK–(COMMERCIAL THREAD) – Kroll Bond Rating Agency (KBRA) publishes a report on the performance trends of commercial mortgage-backed securities (CMBS) lending in the United States observed during the service reference period of September 2021. The delinquency rate in September fell to 4.4%, from 4.6% in August. This is the 15th consecutive month the rate has fallen or has remained stable compared to the previous month since its peak in June 2020, at 8.2%.

Accommodation recorded the largest drop in delinquency rates, at 10.2% vs. 11.3%, followed by retail trade (7.2% vs. 7.4%) and multi-family (1.7% vs. 1.9%). As in recent months, the drop in accommodation defaults has been significant, with 29 accommodation loans totaling $ 618.2 million becoming common or resolved. A review of the conduit universe showed defaults declined to 5.4%, down 30 basis points from the 5.7% default rate in August. In September, the amount of loans conducted in special services also fell for the fifth consecutive month, to $ 17.7 billion from $ 18.2 billion in August 2021.

Click on here to view the report.

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KBRA is a full service credit rating agency registered in the US, EU and UK, and is designated to provide structured finance ratings in Canada. KBRA ratings may be used by investors for regulatory capital purposes in several jurisdictions.

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