KBRA Assigns Ratings to PFP 2021-7

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of ratings to PFP 2021-7, a $1.0 billion CRE CLO with limited loan acquisition ability.

Initially, the transaction is expected to be collateralized by 27 whole loans (or participations therein) with an in-trust balance of $738.9 million and $263.1 million of cash collateral that can be used to acquire nine pre-identified delayed-close loans within 90 days following the closing date. Should the $263.1 million of cash collateral not be used to acquire the delayed-close loans, it will be applied as principal proceeds to pay down the notes in accordance with transaction documentation. During the 36-month period post-closing, the transaction permits reinvestment of certain proceeds for the acquisition of future funded companion loan participations related to the initial transaction collateral.

This transaction also includes a par value test and an interest coverage test (the note protection tests). If either test is not satisfied on any determination date, on the following payment date, interest proceeds remaining after interest is paid to the Class E notes will be used to pay down the principal balances of the Class A through E notes in sequential order until the test is satisfied, or such classes of notes are paid in full.

Click here to view the report. To access ratings and relevant documents, click here.

Related Publications

• PFP 2021-7 CRE CLO KCAT
• U.S. CMBS Multi-Borrower Rating Methodology
• U.S. CMBS Property Evaluation Methodology
• Global Structured Finance Counterparty Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority pursuant to the Temporary Registration Regime. 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.

Contacts

Analytical Contacts

Michael McGorty, Senior Director (Lead Analyst)

+1 (646) 731-2393

michael.mcgorty@kbra.com

Michael B. Brown, Managing Director

+1 (646) 731-2307

michael.b.brown@kbra.com

Nitin Bhasin, Senior Managing Director (Rating Committee Chair)

+1 (646) 731-2397

nitin.bhasin@kbra.com

Business Development Contact

Michelle Patterson, Managing Director

+1 (646) 731-2397

michelle.patterson@kbra.com