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 June 2021 servicer reporting period. The June delinquency rate fell to 5.2%, down from 5.4% in May. This is the 12th consecutive month where the rate has declined or was flat from the previous month since peaking in June 2020, at 8.2%.
The improvement mainly reflects lodging sector performance, which recorded a 90-bp decrease this month, following a decline of 100 bps in May. The improvement in the sector was broad, with 35 loans ($505 million) becoming current. In contrast, the retail delinquency rate did not show any improvement this month. Despite three larger mall loans (each in excess of $100 million) becoming current this month, there were seven newly delinquent ones. These include two in a LL transaction, BBUBS 2012-TFT, which failed to pay off at maturity, as well as five in conduits.
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KBRA is a full-service credit rating agency registered in the U.S., the EU and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.