KBRA Releases Research – CMBS Loan Performance Trends: January Update

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 January 2021 servicer reporting period. The delinquency rate for the period remained unchanged month-over-month, at 6.5%, among KBRA-rated CMBS.

This is the seventh consecutive month that delinquencies either declined or were flat from its 8.2% June peak. However, other loan performance metrics trended slightly negative this month, illustrating the continued economic effects of the COVID-19 pandemic on commercial real estate markets. For example, the lodging delinquency and specially serviced rate increased to 22.9% from 22.4% from the prior month. In addition, the rate for loans classified as less than 30 days delinquent increased 60 basis points MoM in January, to 2.6%. This statistic is a general precursor of loans that will be identified as delinquent in the next payment period, meaning a higher likelihood that we could see an uptick in conduit delinquencies in February. This month, in addition to the usual reporting, KBRA provides some notable data points surrounding loans transferred into special servicing to provide context of how CRE has fared during the pandemic, specifically how few specially serviced loans have been corrected and returned to the master servicer.

Click here to view the report.

Related Publications

• CRE Securitization: LIBOR to SOFR Path Paved but Curves Lie Ahead
• KBRA CMBS Loss Compendium
• CMBS Trend Watch: December 2020
• ARAs Surge: Are They a Good Proxy for CMBS Loan Losses?

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.