KBRA Affirms All Ratings for VMC 2023-PV1
19 Jul 2024 | New York
KBRA affirms all of its outstanding ratings for VMC 2023-PV1, a CRE CLO transaction with the ability to reinvest principal proceeds for 24 months. The affirmations follow a surveillance review of the transaction, which has exhibited stable collateral performance since securitization.
At the time of this review, the total collateral balance is $613.8 million, which is comprised of 21 first mortgage loans secured by 21 properties, and approximately $130,000 of cash collateral. During the reinvestment period, principal proceeds received with respect to the mortgage assets, can be reinvested in previously unidentified whole loans and senior participations, provided the assets meet certain specified eligibility criteria. Additionally, the transaction provides the sponsor with the ability to effectuate modifications to performing loans, as well as buy out defaulted and credit risk assets. Since securitization, the transaction has received $45.4 million (7.4% of the collateral balance) in principal proceeds from the full payoff of one loan. The proceeds were utilized to acquire two loans totaling $46.1 million.
As of the June 2024 remittance period, there are no specially serviced loans; however, one loan (7.2% of the pool balance) is 30+ days delinquent but is pending a loan modification to cure the delinquency. None of the loans in the pool have been identified as K-LOCs. The transaction’s WA KLTV is 127.9%, compared to 126.3% at securitization. The KDSC at Index Cap is 0.91x, compared to 0.94x at securitization. The overcollateralization and interest coverage tests have each been satisfied during each distribution date since issuance.
At securitization, 14 loans (71.7% of the collateral balance) had related companion participations representing unfunded future advance obligations, with an aggregate unfunded amount of $38.7 million. In total, there are currently 13 loans (66.9%), with unfunded future advance obligations with an aggregate of $25.0 million unfunded.
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