-

KBRA Credit Profile Releases CREFC High-Yield, Distressed Assets, & Servicing Conference 2025 Recap

NEW YORK--(BUSINESS WIRE)--KBRA Credit Profile (KCP), a division of KBRA Analytics, attended the Commercial Real Estate Finance Council’s (CREFC) annual High-Yield, Distressed Assets, & Servicing Conference, held in New York City on March 4. Over 300 commercial real estate (CRE) professionals attended the event, which comprised five panels and a one-one-one discussion.

Key Takeaways

  • Persistent inflation concerns and the possibility of stagflation continue to weigh on market sentiment, highlighting the difficulty in predicting near-term interest rate moves.
  • With a wave of maturities looming, attendees urged borrowers and servicers to initiate discussions early to help mitigate default risk and create opportunities for pre-emptive workouts.
  • Office-to-residential conversions face feasibility challenges, while construction financing, especially for large projects, remains tight.
  • Office delinquencies continue to lead defaults, and multifamily continues to attract investors even as margins are pressured by rising costs.
  • Private credit providers are stepping in as banks reduce their CRE exposure, but underwriting standards have become more selective, and pricing remains elevated.
  • Amid euphoric sentiment for data centers, panelists noted the importance of due diligence and prudent underwriting.

Click here to view the report.

About KBRA

KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions.

Doc ID: 1008449

Contacts

Sam Nadol, Analyst
+1 215-882-5867
sam.nadol@kbra.com

Vayu Sarangam, Analyst
+1 215-882-5419
vayu.sarangam@kbra.com

Daniel Greathouse, Senior Analyst
+1 215-882-5439
daniel.greathouse@kbra.com

Nick Heller, Associate Director
+1 215-882-5426
nick.heller@kbra.com

Kroll Bond Rating Agency, LLC

Details
Headquarters: New York City, New York
CEO: Jim Nadler
Employees: 400+
Organization: PRI

Release Versions

Contacts

Sam Nadol, Analyst
+1 215-882-5867
sam.nadol@kbra.com

Vayu Sarangam, Analyst
+1 215-882-5419
vayu.sarangam@kbra.com

Daniel Greathouse, Senior Analyst
+1 215-882-5439
daniel.greathouse@kbra.com

Nick Heller, Associate Director
+1 215-882-5426
nick.heller@kbra.com

Social Media Profiles
More News From Kroll Bond Rating Agency, LLC

KBRA Assigns Preliminary Ratings to GS Mortgage-Backed Securities Trust 2026-DSC1 (GSMBS 2026-DSC1)

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to 6 classes of mortgage-backed certificates from GS Mortgage-Backed Securities Trust 2026-DSC1 (GSMBS 2026-DSC1), a $301.8 million RMBS transaction sponsored by Goldman Sachs Mortgage Company (Goldman Sachs) solely backed by collateral underwritten to debt-service coverage ratio (DSCR) guidelines. The underlying pool ($301.8 million), comprising 1,331 rental property mortgages as of the February 1, 2026 cut-off date. The mortgage loan...

KBRA Assigns Preliminary Ratings to ME Funding, LLC, Series 2026-1 Senior Secured Notes

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to ME Funding, LLC, Series 2026-1 (Massage Envy 2026-1), a whole business securitization (WBS). Massage Envy 2026-1 represents the Issuer’s third securitization following the establishment of the master trust in 2019. KBRA anticipates withdrawing the ratings on the Issuer’s Series 2024-1, Class A-1-VFN, Class A-1-LR and Class A-2 Notes in conjunction with the issuance of the Series 2026-1 Notes, whose proceeds are being used to fully r...

KBRA Assigns Preliminary Ratings to Sequoia Mortgage Trust 2026-3 (SEMT 2026-3)

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to 102 classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2026-3 (SEMT 2026-3), a $384.7 million prime RMBS transaction. The pool is comprised of 305 first-lien, fully amortizing fixed rate mortgages with mostly 30-year maturity terms. The collateral is characterized by a weighted average (WA) original credit score of 782 and moderate borrower equity, with a WA original LTV of 71.8% and WA original CLTV of 71.8%....
Back to Newsroom