KBRA Releases Research - CMBS Loan Performance Trends: February 2023
KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the February 2023 servicer reporting period. The delinquency rate among KBRA-rated U.S. CMBS rose to 3.06% in February, an increase of 12 basis points (bps) from the prior month's 2.94%. This is the first time the rate has risen above the 3% threshold since June 2022 after it dipped to a post-COVID low of 2.76% in September 2022. Of the $646.2 million in CMBS loans that were sent to special servicing this reporting period, approximately $581.8 million or 90% were transferred due to imminent or actual maturity default, which is up from the 70%-80% range recorded for the past three months. Retail special servicing transfers totaled $418 million (65.7%), including two larger-balance mall loans: the $295 million The Shops at Mission Viejo (RBSCF 2013-SMV), which matured earlier this month, and the $244.9 million Crossgates Mall (COMM 2012-CR1, COMM 2012-CR2, and COMM 2012-CR3), which has an upcoming maturity date in May 2023.
In this report, KBRA provides observations across our $314.7 billion rated universe of U.S. private label CMBS including conduits, single-asset single borrower (SASB), and large loan (LL) transactions.
Other key observations of the February 2023 performance data are as follows:
KBRA is a full-service credit rating agency registered in the U.S., the EU and the UK, and is designated to provide structured finance ratings in Canada. KBRA's ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.
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