KBRA Credit Profile Releases KCP K-LOC Index: November 2021

NEW YORK--(BUSINESS WIRE)--KBRA Credit Profile (KCP), a division of KBRA Analytics, releases its KCP K-LOC Index for the month of November.

K-LOC Index

The KBRA Loan of Concern (K-LOC) Index was 25.21% in November, down from 25.86% in October and the trailing 12-month high of 29.43% in February 2021. We removed the K-LOC designation on 183 loans ($2.13 billion) in our post-crisis (2.0) conduit CMBS coverage universe in November, including 68 retail ($915.9 million) and 83 lodging ($887.6 million) loans, based on our improved outlook for the underlying collateral.

In addition to our examination of the index by vintage, property type, and metropolitan statistical area (MSA), we highlight the One Technology Plaza loan (GSMS 2013-GC10), which is collateralized by a 148,216-sf office building in Peoria, Illinois. The property has elevated near-term lease rollover, inclusive of two leases with the General Services Administration (GSA) that expire in 2022.

About the Index

The K-LOC designation serves as KBRA’s primary metric used to identify loans that are in default or at heightened risk of default based on KBRA Credit Profile’s (KCP) proprietary research and analysis. KCP is a division of KBRA Analytics. The K‑LOC Index for November 2021 is a composite of 4,188 K-LOCs with an aggregate UPB of $85.34 billion across 433 post-crisis conduit transactions. For any given cohort, the index is the quotient of its aggregate K-LOC balance and the cohort’s defeasance-adjusted UPB. As it includes loans at risk of default, it is a useful, forward-looking credit barometer. The K‑LOC designation is determined by our team of analysts, who perform in-depth monthly analysis on individual transactions and the underlying loan collateral.

Click here to view the report.

Related Publications

• KBRA Credit Profile (KCP) K-LOC Index: October 2021
• KBRA Credit Profile (KCP) K-LOC Index: September 2021
• KBRA Credit Profile (KCP) K-LOC Index: August 2021

About KBRA Analytics

KBRA Analytics, LLC (KBRA Analytics) is our premier product platform for high quality data and advanced analytics. Our seasoned teams of industry specialists across each product provide unparalleled insight creating a foundation of deeper analysis and rapid discovery for users. KBRA Analytics is an affiliate of Kroll Bond Rating Agency, LLC (KBRA). KBRA is a full-service credit rating agency registered in the U.S., designated to provide structured finance ratings in Canada, and with credit rating affiliates registered in the EU and UK.