Kroll Bond Rating Agency (KBRA) releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the August 2021 servicer reporting period. The August delinquency rate fell to 4.6%, down from 4.9% in July. This is the 14th consecutive month where the rate has declined or was flat from the previous month since peaking in June 2020, at 8.2%.
Lodging and retail recorded the largest decreases in their delinquency rates, to 11.3% from 11.9% and 7.4% from 8%, respectively. Similar to recent months, the decline in lodging delinquencies was sizable, with 26 lodging loans totaling $486.7 million becoming current or resolving. The disposition of six loans totaling $130.7 million contributed to the decline in retail delinquencies. The subject retail loans were resolved with an average loss severity of 44.6%. Multifamily was the only property type that recorded an increase in delinquency. The rate rose to 1.9% from 1.6%, driven by five loans totaling $109.4 million that became newly delinquent. However, all but one of the five were already in special servicing prior to this month’s delinquency.
Click here to view the report.
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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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