KBRA assigns preliminary scores to BBCMS 2021-C10



NEW YORK–(COMMERCIAL THREAD) – Kroll Bond Rating Agency (KBRA) is pleased to announce the award of preliminary ratings to 19 classes of BBCMS 2021-C10, a $ 846.8 million CMBS conduit transaction with 64 loans secured by 127 properties .

The collateral properties are located in 33 MSA, of which the three largest are Philadelphia (14.1%), New York (11.4%) and Las Vegas (11.2%). The pool is exposed to all major types of real estate, with five types representing more than 10.0% of the pool balance: offices (29.0%), multi-family (20.8%), industrial (11.5% ), commerce (11.3%) and self-storage (11.2%). The loans have principal balances ranging from $ 1.5 million to $ 50.0 million for the pool’s largest loan, The Atlantic (5.9%), a 268-unit Class A multi-family building located at Philadelphia, in the city’s CBD. Top five loans, which also include Morris Corporate Center (5.8%), MGM Grand & Mandalay Bay (5.8%), Philadelphia Logistics Center (5.2%) and Montecito Tower (3.9%) , represent 26.7% of the initial pool balance. , while the top 10 loans represent 42.6%.

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 9.3% lower than the issuer’s cash flow. KBRA cap rates were applied to the KNCF of each asset to arrive at values ​​which, on an aggregate basis, were 44.1% lower than third party appraised values. The pool has a KLTV trust of 101.8% and an all-inclusive KLTV of 107.1%. 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.

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Further information on key credit considerations, sensitivity analyzes which examine the factors that may affect these credit ratings and how they could lead to an improvement or a downgrade, and ESG factors (when they are a key factor for change in credit rating or rating outlook) can be found in the full assessment 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 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.

About KBRA

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 shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating provider.


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