Press Release|CMBS

KBRA Affirms All Ratings for TRTX 2021-FL4

27 Mar 2024   |   New York


KBRA affirms all of its outstanding ratings for TRTX 2021-FL4, a CRE CLO transaction with a two-year reinvestment period. The affirmations follow a surveillance review of the transaction, which has exhibited a worsening in collateral performance since securitization including the addition of K-LOCs. Also, the transaction is currently undercollateralized following the sale by the trust to a third party of the 1525 Wilson asset at a loss. However, the magnitude of the changes and undercollateralization does not warrant ratings adjustments at this time.

At the time of this review, the total collateral balance is $1.0 billion, which is comprised of 21 first mortgage loans secured by 80 properties. During the transaction’s reinvestment period, the issuer had the ability to acquire previously unidentified whole loans and senior participations with principal proceeds from the mortgage assets, provided such assets satisfied the reinvestment criteria and eligibility criteria. The reinvestment period ended as expected in March 2023 and the final reinvestment assets were acquired in May 2023.

As of the March 2024 remittance period, there is one specially serviced asset (6.0%), which is REO. KBRA identified three K-LOCs (18.9%), including the REO asset. The K-LOCs include:

  • 888 Broadway (3rd largest, 7.0% of the current pool)
  • Tower Plaza (7th largest, 6.0%, REO, 47.5% estimated loss severity)
  • One Bay Plaza (8th largest, 5.9%)

The transaction’s WA KLTV is 139.6%, compared to 133.5% at last review and 127.4% at securitization. The KDSC at Index Cap is 0.96x, compared to 1.07x at last review and 1.02x at closing. The overcollateralization and interest coverage tests have each been satisfied during each distribution date since issuance.

At securitization, 16 loans (91.2% of the issuance pool) had related companion participations representing unfunded future advance obligations, with an aggregate unfunded amount of $137.9 million. In total, there are currently 14 loans (67.5% of the current pool), with aggregate unfunded future advance obligations of $80.5 million as of September 2023.

To access rating and relevant documents, click here.

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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

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. 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.

Doc ID: 1003711

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