KBRA Releases Research – Coronavirus (COVID-19): CMBS Loan Performance Trend Update

NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) releases a report on the wave of commercial real estate (CRE) coronavirus (COVID-19) pandemic-related borrower relief requests, special servicing transfers, and increased delinquencies that materialized in the May 2020 reporting period.

In this report, KBRA provides observations across its $285 billion rated universe of U.S. private label commercial mortgage-backed securities (CMBS) including conduits, single-asset single borrower (SASB), and large loan (LL) transactions. The report is an update of KBRA’s CMBS Special Servicing and Watchlist Trends research, which covered loan performance trends over March 2020 to mid-April.

May 2020 performance data indicates overall delinquencies rose to 5% ($14.4 billion), or approximately 5x the February delinquency rate. In May, there was an additional $17.9 billion in loans classified as late but less than 30 days delinquent. June 2020 could see another high increase in delinquencies if a large number of these late payers roll to 30+ days delinquent. The delinquency rate is led by loans secured by lodging properties at 13.6%, which does not include another 7% that is current but in special servicing, and another 12.4% that was reported as late on its May debt service payments.

Click here to view the report.

Related Publications

• Coronavirus (COVID-19): CMBS Special Servicing and Watchlist Trends
• CMBS Trend Watch: April 2020
• Coronavirus (COVID-19): CRE Recovery Clues From the Great Recession and China
• Coronavirus (COVID-19): The Commercial Real Estate Landscape
• Coronavirus (COVID-19):CMBS SASB Retail Mall Loans to Underperform
• Coronavirus (COVID-19): CMBS SASB Lodging Loans to Underperform

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 designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA. Kroll Bond Rating Agency Europe Limited is located at 6-8 College Green, Dublin 2, Ireland.