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KBRA Downgrades Five Ratings and Affirms All Other Ratings for BBCMS 2021-C12

12 Sep 2025   |   New York

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KBRA downgrades the ratings of five certificates and affirms all other outstanding ratings for BBCMS 2021-C12, a $1.1 billion CMBS conduit transaction. The affirmations follow a surveillance review of the transaction, which has exhibited a worsening in pool performance compared to last review. The rating actions also reflect KBRA’s estimated losses for three K-LOCs (8.2% of the pool balance) and the resulting loss adjusted C/E levels.

As of the August 2025 remittance period, there are three (8.2%) specially serviced assets, two (7.7%) of which are in foreclosure and one (0.5%) that is over 90 days delinquent. KBRA identified six loans (13.0%) as K-LOCs, including the specially serviced assets. Of the six K-LOCs, three (8.2%) have estimated losses. The K-LOCs are depicted in the table below:

Loss Given Default (000s) Loss Severity 3 1100 & 820 First Street NE OF $65,000 6.1% Y 90+ N Foreclosure 06/02/2025 $25,583 39.4% 16 Hamilton Commons RT $22,000 2.1% N C N DSCR 04/03/2025 - - 20 Sorrel River Ranch LO $19,000 1.8% N C N Delinquent 01/09/2025 - - 21 Hayes Court MF $17,100 1.6% Y 90+ N Foreclosure 06/26/2023 $1,150 6.7% 32 Residence Inn - Boca Raton LO $9,349 0.9% N C N DSCR 08/21/2024 - - 31 Courtyard by Marriott ‐ Lake Charles, LA LO $5,081 0.5% Y 90+ N Specially Serviced 03/15/2023 $4,472 88.0% Total K-LOCs $137,530 13.0% $31,204 1. K-LOC Date is the date when the most recent K-LOC was initially determined. 2. Loss Given Default assumes a 100% probability of default (PD). KBRA may determine a lower PD when estimating losses to a transaction. KBRA Estimated 2 K-LOCs Prosp. ID Loan Name Prop Type Current In- Trust Balance (000s) % of Deal Balance SS Loan Status Mod (Y/N) Primary K-LOC Reason K-LOC Date 1
Source: KBRA.com

Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 107.5%, compared to 109.2% at last review and 103.8% at securitization. The KDSC is 2.10x, unchanged from 2.10x at last review and compared to 2.19x at securitization.

Details concerning the classes with rating changes are as follows:

  • Class F to BB (sf) from BB+ (sf)
  • Class G to B (sf) from BB- (sf)
  • Class H-RR to B- (sf) from B (sf)
  • Class X-F to BB (sf) from BB+ (sf)
  • Class X-G to B (sf) from BB- (sf)

To access ratings and relevant documents, click here.

Click here to view the report.

Related Publication

Methodologies

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), one of the major credit rating agencies (CRA), is a full-service CRA 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. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1011238