NEW YORK–(COMMERCIAL THREAD) – Kroll Bond Rating Agency (KBRA) Releases Report on Commercial Mortgage Backed Securities Lending (CMBS) Performance Trends in the United States Observed During Service Reference Period of June 2021. The delinquency rate for June fell to 5.2%, from 5.4% in May. This is the 12th consecutive month the rate has fallen or remained stable compared to the previous month since its peak in June 2020, at 8.2%.
The improvement mainly reflects the performance of the accommodation sector, which was down 90 basis points this month, following a 100 basis point decline in May. The improvement in the sector was widespread, with 35 loans ($ 505 million) becoming current. In contrast, the retail delinquency rate showed no improvement this month. Although three larger mall loans (each exceeding $ 100 million) became common this month, there were seven newly in arrears. These included two in an LL transaction, BBUBS 2012-TFT, which was not redeemed at maturity, as well as five in conduits.
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KBRA is a full service credit rating agency registered in the US, EU and UK, and is designated to provide structured finance ratings in Canada. KBRA ratings may be used by investors for regulatory capital purposes in several jurisdictions.