NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) released today its CMBS monthly newsletter, CMBS Trend Watch.
CMBS issuance this month totaled $7.8 billion, which brings this year’s total to $10.6 billion or down 34.5% on a year-over-year basis. We discuss our thoughts on issuance in greater detail in the publication’s Spotlight section. KBRA has curtailed its forecast, and believes that private label issuance could be as low as $60 billion in 2016 due to the current market malaise, as well as uncertainty surrounding risk retention.
Conduit credit metrics from the KBRA rated universe are also highlighted in the publication. This month three conduits were added to our rolling three-month averages for KLTV, our IO Index, as well as KDSC and KBRA Debt Yield. Of note, KLTV increased slightly to 101.2% this month, up from 100.9% in January. This was the first increase since October 2015. These trends, as well as more granular information for KBRA rated conduits, are available in our KBRA Comparative Analytic Tool (KCAT), which accompanies the publication. The file enables users to compare data points from all KBRA rated conduits.
The report also highlights this month’s rating surveillance activity. During February, 17 transactions were reviewed, which resulted in 184 ratings actions. The actions included one upgrade as well as three downgrades that impacted two transactions.
To view the full report, please click the following link: CMBS February Trend Watch
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).