Kroll Bond Rating Agency (KBRA) has released an overview of the surveillance process currently used to monitor the ratings for single-borrower, large loan, and conduit CMBS. Together, these types of transactions represent the majority of our rated CMBS universe.

After KBRA assigns a CMBS credit rating, the CMBS surveillance team actively monitors all outstanding ratings for the life of each securitization. A key part of our rating monitoring process includes the review of trustee and servicer data at the trust and loan level. From this data, KBRA prepares internal reports which assist us in tracking delinquencies, specially serviced loans, watchlist items, losses, defeasances, and loan payoffs.

Through the monitoring process, KBRA determines if credit changes have occurred that may warrant a rating adjustment for a given transaction. If there have been credit changes, they will be further examined to determine if a more in-depth full review is needed. The process also considers news media reports, as well as information from KBRA’s Credit Profile (KCP) Portal, a proprietary service that provides monthly transaction reports containing multiple valuations on all Top 10 loans and distressed assets based on current market conditions. In addition, we will also consider post securitization notices as well as requests received via the certificate administrator for Rating Agency Confirmations (RACs).

Should the monitoring process not result in a full review, KBRA generally will conduct full rating reviews for each deal within its rated universe on an annual basis. Our ratings are determined based on the following methodologies: CMBS Property Evaluation Methodology, CMBS Single Borrower & Large Loan Rating Methodology, and the U.S. CMBS Multi-Borrower Rating Methodology.

To view the report, please use the following link:
www.krollbondratings.com/show_report/3557

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About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).