KBRA Releases Research – CMBS Loan Performance Trends: July 2021

Kroll Bond Rating Agency (KBRA) releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the July 2021 servicer reporting period. The July delinquency rate fell to 4.9%, down from 5.2% in June. This is the 13th consecutive month where the rate has declined or was flat from the previous month since peaking in June 2020, at 8.2%.

This month, KBRA also analyzed the special servicing and modification activity of CMBS 2.0 loans outstanding at the start of the pandemic. The population, which included KBRA-rated and non-KBRA rated deals, consisted of 19,586 loans totaling $446 billion in principal balance. From April 2020 to June 2021, 1,383 (7.1%) loans transferred to special servicing, totaling $49.5 billion (11.1%). Of these, 28.6% by loan count and 34.6% by balance have transferred back to the master servicer. In addition, 885 (4.5%) loans totaling $38.4 billion (8.6%) were modified during this period. KBRA’s analysis relied on the special servicer transfer date, master servicer return date, and date of last modification as reported in the CRE Finance Council Investor Reporting Package (CREFC IRP) Loan Periodic File.

Click here to view the report.

Related Publications

• KBRA CMBS Loss Compendium Update: June 2021
• CMBS Trend Watch: June 2021
• CMBS Single-Tenant Exposure Continues Climb
• CRE CLO Loan Default and Loss Study

About KBRA

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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