KBRA Releases CMBS Exposure to Recent Sears Store Closures

NEW YORK--()--Kroll Bond Rating Agency (KBRA) releases CMBS exposure to Sears recent store closure lists.

On May 31, 2018, Sears Holdings Corporation (SHLD) announced plans to shutter 63 additional stores, marking the third such announcement since April 2018. The retailer initially identified 72 stores slated for the latest round of closures, however nine locations were pulled from the list to allow for additional evaluation. It is anticipated the company will soon operate less than 900 stores, which compares with over 3,500 stores in operation as of January 2012.

KBRA leveraged its Credit Profile Portal (KCP) and identified 37 properties, ($1.7 billion by allocated loan amount), within 23 KBRA rated transactions that are included on the April/May store closure lists. The 37 properties secure 20 loans with allocated loan amounts ranging from $1.1 million to $275.0 million. As a percentage of a transaction’s principal balance, the loan amount for those properties range from 0.1% to 66.3%. Of the identified properties, Sears is a collateral tenant for 25 locations and a non-collateral tenant for 12 locations.

While no rating actions are imminent at this time, we will continue to monitor the situation and any impact that the closure of these stores could have on our rated securities. For a complete list of CMBS 2.0 exposure to the retailer which identifies KBRA rated transactions, please click here.

CONNECT WITH KBRA
Twitter
LinkedIn
Download the iOS App
YouTube

About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Kroll Bond Rating Agency
Analytical Contacts:
William Petersen, Managing Director, (215) 882-5861
wpetersen@kbra.com
Nitin Bhasin, CFA, Senior Managing Director, (646) 731-2334
nbhasin@kbra.com
Keith Kockenmeister, Senior Managing Director, (646) 731-2349
kkockenmeister@kbra.com

Contacts

Kroll Bond Rating Agency
Analytical Contacts:
William Petersen, Managing Director, (215) 882-5861
wpetersen@kbra.com
Nitin Bhasin, CFA, Senior Managing Director, (646) 731-2334
nbhasin@kbra.com
Keith Kockenmeister, Senior Managing Director, (646) 731-2349
kkockenmeister@kbra.com