KBRA Credit Profile Releases KCP K-LOC Index: March 2022

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

K-LOC Index

The KBRA Loan of Concern (K-LOC) Index was 22.03% in March 2022, down from 22.9% in February 2022 and 29.17% in March 2021. We removed the K-LOC designation on 205 loans ($3.56 billion) in our conduit CMBS coverage universe in March, including 119 lodging ($2.3 billion) and 47 retail ($586.2 million) loans, based on our improved outlook for the underlying collateral.

In addition to our examination of the index by vintage, property type, and metropolitan statistical area (MSA), we highlight Chase Bank Tower (DBGS 2018-C1; CMBX 12), a new K-LOC collateralized by an office property in McAllen, Texas. We discuss recent collateral performance as well as the asset’s valuation history.

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 March 2022 is a composite of 3,620 K-LOCs with an aggregate UPB of $75.58 billion across 431 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. For the purposes of this report, we exclude legacy CMBS (2008 and earlier).

Click here to view the report.

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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

Maverick Force, Director

+1 (215) 882-5904

maverick.force@kbra.com

Patrick Czupryna, Managing Director

+1 (215) 882-5854

patrick.czupryna@kbra.com

Sales Contact

Marc Iadonisi, Managing Director

+1 (215) 882-5877

marc.iadonisi@kbra.com

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