KBRA Credit Profile Releases KCP K-LOC Index: October 2021
KBRA Credit Profile (KCP), a division of KBRA Analytics, releases its KCP K-LOC Index for the month of October.
The KBRA Loan of Concern (K-LOC) Index was 25.86% in October, down from 26.08% in September and the trailing 12-month high of 29.43% in February 2021. We removed the K-LOC designation on 144 loans ($1.93 billion) in our post-crisis (2.0) conduit CMBS coverage universe in October, including 53 retail ($690.3 million) and 51 lodging ($601.5 million) loans, based on our improved outlook for the underlying collateral.
In addition to our examination of the index by vintage, property type, and MSA, we highlight recent developments relevant to the Executive Hotel Pacific (JPMBB 2013-C14; CMBX 7) loan, which is collateralized by a 153-key full-service hotel in Seattle. The owners recently executed a short-term contract with the city to operate the property as a homeless shelter.
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 October 2021 is a composite of 4,332 K-LOCs with an aggregate UPB of $86.93 billion across 430 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 ueful, 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.
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.
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