NEW YORK–(COMMERCIAL THREAD) – Kroll Bond Rating Agency (KBRA) is pleased to announce the award of preliminary ratings to 38 classes of BANK 2021-BNK36, a $ 1.3 billion CMBS conduit transaction secured by 92 secured commercial mortgages by 128 properties.

The collateral properties are located in 36 MSA, of which the three largest are Chicago (14.3%), New York (10.9%), Los Angeles (6.9%). The pool is exposed to all the major types of real estate, with two types representing more than 15.0% of the pool’s balance: retail (34.5%) and offices (23.8%). The loans have principal balances ranging from $ 992,951 to $ 127.0 million for the pool’s largest loan, One North Wacker (10.0%), which is secured by a LEED Platinum-class certified office tower. A 1.4 million square foot apartment located in the West Loop neighborhood. of Chicago, Illinois, in the city’s CBD. Top five loans, which also include Arizona Mills (5.9%), ExchangeRight Portfolio 50 (5.2%), International Plaza I (5.1%) and Suarez Puerto Rico Industrial Portfolio (4.7%) , represent 30.9% of the initial pool balance. , while the top 10 loans represent 49.1%.

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 a global basis, KNCF was 8.9% lower than the cash flow of the issuer. KBRA cap rates were applied to the KNCF of each asset to derive values ​​which, on an aggregate basis, were 44.2% lower than third party appraised values. The pool has a KLTV trust of 94.6% and an all-inclusive KLTV of 97.2%. 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.

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Disclosures

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

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