NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the December 2020 servicer reporting period. The December delinquency rate of 6.5% came in 30 basis points (bps) lower than the prior month among KBRA-rated CMBS. This is the sixth consecutive month that delinquencies either declined or were flat from its 8.2% June peak. However, it is still up 5.5% year-over-year.
Underlying the decrease in the delinquency rate, the balance of newly delinquent loans in December fell 50% from last month. While this is a positive sign, there are concerns that borrowers coming out of forbearance or temporary relief measures could be challenged to bring loans current as the pandemic continues. For now, it does not appear to be the case. After reviewing servicer watchlist and special servicing commentary of the 65 loans that make up the $1 billion in newly delinquent loans, there were only nine that previously received a forbearance or some other form of relief.
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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 is registered with ESMA as a CRA. Kroll Bond Rating Agency Europe is located at 6-8 College Green, Dublin 2, Ireland.