Kroll Bond Rating Agency Releases CMBS Research: “A Lookback on New Issue Conduit Credit”

NEW YORK--()--Kroll Bond Rating Agency (KBRA) released a report today which provides an analysis of 2016 credit quality relative to the performance of previous years. Credit metrics for both KBRA rated and non-rated transactions were compared. This is an update to last year’s report “Is the Tide Turning for Conduit Credit?” which was published in June 2016.

The key take away for this year’s report is that 2016 conduit issuance for both KBRA rated and non-rated transactions experienced improved credit metrics compared to 2015. However, the KBRA rated deals demonstrated more meaningful improvement than non-rated pools in regard to leverage, coverage, and debt yield.

Notably, the In-Trust KLTV for KBRA rated deals decreased to 98.1% from 102.9% in 2015, a 4.8 percentage point decline. In comparison, non-KBRA rated deals declined two percentage points, from 105.0% to 103.0%. The trend is similar for the All-In KLTVs.

For more details, please click here to see the report.

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

Contacts

Analytical:
Albert Lee, (646) 731-2448
Associate
alee@kbra.com
or
Patrick McQuinn, (646) 731-2445
Associate Director
pmcquinn@kbra.com
or
Anna Hertzman, (646) 731-2367
Managing Director
ahertzman@kbra.com
or
Nitin Bhasin, (646) 731-2334
CFA, Managing Director
nbhasin@kbra.com
or
Eric Thompson, (646) 731-2355
Senior Managing Director
ethompson@kbra.com

Contacts

Analytical:
Albert Lee, (646) 731-2448
Associate
alee@kbra.com
or
Patrick McQuinn, (646) 731-2445
Associate Director
pmcquinn@kbra.com
or
Anna Hertzman, (646) 731-2367
Managing Director
ahertzman@kbra.com
or
Nitin Bhasin, (646) 731-2334
CFA, Managing Director
nbhasin@kbra.com
or
Eric Thompson, (646) 731-2355
Senior Managing Director
ethompson@kbra.com