KBRA Credit Profile Releases KCP K-LOC Index: February 2021

NEW YORK–(BUSINESS WIRE)–KBRA Credit Profile (KCP), a division of KBRA Analytics, releases its KCP K-LOC Index for the month of February.

K-LOC Index

The KBRA Loan of Concern (K-LOC) Index increased slightly to 29.43% in February 2021 from 29.26% in January. During the month, 67 new K-LOCs with an aggregate unpaid principal balance (UPB) of $1.67 billion were identified across our coverage universe of post-crisis (2.0) conduit CMBS.

We continue to provide K-LOC Indexes for the 20 largest metropolitan statistical areas (MSA) based on 2.0 conduit UPB, with five MSAs carrying an index of 30% or more. These include Las Vegas (49.89%), Charlotte (38.13%), Houston (35.69%), Atlanta (34.46%), and Dallas-Fort Worth (30.99%). Lodging and retail were outsize contributors to K-LOCs in each of these MSAs, and office was a significant contributor for Houston.

About the Index

The K-LOC designation serves as KBRA’s primary metric used to identify loans that are in default or at heightened risk of default based on KBRA Credit Profile’s (KCP) proprietary research and analysis. KCP is a division of KBRA Analytics. The K-LOC Index for February 2021 is a composite of 5,208 K-LOCs with an aggregate UPB of $100.09 billion across 422 post-crisis conduit transactions. For any given cohort, the index is the quotient of its aggregate K-LOC balance and the cohort’s defeasance-adjusted UPB. As it includes loans at risk of default, it is a useful, forward-looking credit barometer. The K-LOC designation is determined by our team of analysts, who perform in-depth monthly analysis on individual transactions and the underlying loan collateral.

Click here to view the report.

Related Publications

• KBRA Credit Profile (KCP) K-LOC Index: January 2021
• KBRA Credit Profile (KCP) K-LOC Index: December 2020
• KBRA Credit Profile (KCP) K-LOC Index: November 2020

About KBRA Analytics

KBRA Analytics, LLC (KBRA Analytics) is our premier product platform for high quality data and advanced analytics. Our seasoned teams of industry specialists across each product provide unparalleled insight creating a foundation of deeper analysis and rapid discovery for users. KBRA Analytics is an affiliate of Kroll Bond Rating Agency, LLC (KBRA). KBRA is a full-service credit rating agency registered in the U.S., designated to provide structured finance ratings in Canada, and with credit rating affiliates registered in the EU and UK.

Contacts

William Bilinkas, Senior Analyst

+1 (215) 882-5916

william.bilinkas@kbra.com

Maverick Force, Associate Director

+1 (215) 882-5904

maverick.force@kbra.com

Patrick Czupryna, Senior Director

+1 (215) 882-5854

patrick.czupryna@kbra.com

Sales Contact

Marc Iadonisi, Senior Sales Director

+1 (215) 882-5877

marc.iadonisi@kbra.com