Le Lézard
Subject: Economic News/Analysis

KBRA Releases Research ? CMBS Loan Performance Trends: July 2023

KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the July 2023 servicer reporting period. After a slight improvement in June, the delinquency rate among KBRA-rated U.S. CMBS rose sharply in July to 3.93%, a 34-basis point (bp) increase. The total delinquent and specially serviced loan rate continued trending upward for the fourth straight month to 6.44%, with a 37-bp month-over-month (MoM) increase.

In July, CMBS loans totaling $2.6 billion were either transferred to special servicing or became newly delinquent, 51.9% ($1.3 billion) of which was due to imminent or actual maturity default. Office continues to have the highest exposure, accounting for 34.7% ($898.4 million) of the newly specially serviced and newly delinquent loans, while retail properties came in second at 26.4% ($683.4 million), and mixed-use came in third at 23.7% ($613.9 million).

Other key observations of the July 2023 performance data are as follows:

In this report, KBRA provides observations across our $314.8 billion rated universe of U.S. private label CMBS including conduits, SASB, and large loan (LL) transactions.

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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