KBRA Releases Research – CMBS Loan Performance Trend: June Update

Kroll Bond Rating Agency (KBRA) releases a report on trends observed in the June 2020 servicer reporting period, which continues to show an increase in coronavirus (COVID-19) pandemic-related borrower relief requests, special servicing transfers, and delinquencies. The report updates our CMBS Special Servicing and Watchlist Trends and CMBS Loan Performance Trend Update research reports, which covered loan performance trends from March 2020 to May 2020. This month we also analyzed delinquency by loan balance to identify any observable trends.

Across KBRA’s $285 billion universe of U.S. conduit, single-asset single borrower (SASB), and large loan (LL) transactions, delinquencies rose to 8.2% ($23.5 billion), up from 5% ($14.4 billion) in May. In June, there was an additional $9.6 billion (3.4%) in loans classified as late but less than 30 days delinquent, which is down from $17.9 billion (6.8%) in May. This could mean that—at least for the time being—the growth in delinquencies will slow. However, depending on potential resolutions and forbearances on existing delinquent loans, July 2020 could see another increase in delinquencies.

Click here to view the report.

Related Publications

• Coronavirus (COVID-19): CMBS Loan Performance Trend Update
• Coronavirus (COVID-19): CMBS Special Servicing and Watchlist Trends
• CMBS Trend Watch: May 2020
• Coronavirus (COVID-19): A Closer Look at State Multifamily Rent Legislation
• Rating Considerations for Maturing CRE Loans in a Challenging Environment

About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe is registered with ESMA as a CRA. Kroll Bond Rating Agency Europe is located at 6-8 College Green, Dublin 2, Ireland.

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