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NEW YORK – (BUSINESS WIRE) – Kroll Bond Rating Agency (KBRA) is pleased to announce the award of preliminary ratings to 16 classes of 3650R 2021-PF1, a CMBS conduit transaction of $ 918.6 million guaranteed by 35 commercial mortgages guaranteed by 42 Properties.
The collateral properties are located in 15 MSAs, of which the three largest are Los Angeles (22.2%), New York (13.9%) and Boston (8.5%). The pool is exposed to most major types of property, with four types representing over 15.0% of the pool balance: offices (27.5%), retail (23.9%), multi-family (23.0%) ) and mixed use (16.1%). The loans have principal balances ranging from $ 4.4 million to $ 77.9 million for the pool’s largest loan, CX – 350 and 450 Water Street (8.5%), which is secured by a complex 915,233 square foot Class A office and laboratory facility located in Cambridge, Massachusetts. The five biggest loans, which also include 50 Horseblock (6.4%), Rox San (5.7%), 520 Almanor (5.4%) and Plaza La Cienega (5.4%), account for 31.5 % of the initial pool balance, while the first 10 loans account for 53.5%.
KBRA’s transaction analysis incorporated our multi-borrower rating process which begins with our analysts’ assessment of the financial and operational performance of the underlying secured properties, which determines KBRA’s estimate of net cash flow. sustainability (KNCF) and KBRA value using our US CMBS property. Evaluation methodology. On an aggregate basis, KNCF was 12.3% lower than the issuer’s cash flow. KBRA cap rates were applied to the KNCF of each asset to derive values which, on an aggregate basis, were 45.0% lower than third party appraised values. The pool has a KLTV trust of 104.1% and an all-inclusive KLTV of 113.5%. The model deploys rent and occupancy constraints, probability of default regressions, and loss-given-default calculations to determine the losses for each secured loan which are then used to assign our credit scores.
Click here to view the report. To access the assessments and relevant documents, click here.
Further information on key credit considerations, sensitivity analyzes that examine the factors that may affect these credit ratings and how they might lead to an upgrade or downgrade, and ESG factors (when they are a key factor in changing the credit rating or rating outlook) can be found in the full rating report mentioned above.
A description of all substantially significant sources that were used to prepare the credit rating and information about the method (s) (including significant models and sensitivity analyzes of the relevant key rating assumptions, if any) used to determine The credit rating is available in the Information Disclosure Form (s) located here.
Here you will find information about the meaning of each rating category.
Further information relating to this rating measure is available in the information disclosure form (s) referenced above. Additional information regarding KBRA’s policies, methodologies, rating scales and disclosures are available at www.kbra.com.
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a credit rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a credit rating agency with the UK Financial Conduct Authority under the temporary registration regime. In addition, KBRA is appointed as the designated rating agency by the Ontario Securities Commission for issuers of asset-backed securities to file a simplified prospectus or a shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating provider.
Erin Qu, Principal Analyst (Principal Analyst)
+1 (646) 731-3308
Lynn D’Eugenio, Senior Director
+1 (646) 731-2487
Keith Kockenmeister, Senior Managing Director (Chairman of the Rating Committee)
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Michèle Patterson, Executive Director
+1 (646) 731-2397
Source: Kroll Bond Rating Agency, LLC