Press Release|CMBS

KBRA Affirms All Ratings for STWD 2021-FL2

3 May 2024   |   New York


KBRA affirms all of its outstanding ratings for STWD 2021-FL2, a CRE CLO transaction with the ability to reinvest principal proceeds for 30 months. The affirmations follow a surveillance review of the transaction, which has exhibited a worsening in collateral performance since securitization, primarily due to the addition of K-LOCs. However, the magnitude of the changes does not warrant rating actions at this time.

At the time of this review, the total collateral balance is $1.2 billion, which is comprised of 31 first mortgage loans secured by 89 properties. During the reinvestment period, the issuer was permitted to acquire previously unidentified whole loans and senior participations, provided the assets meet certain specified eligibility criteria. Following the first 24 months of the reinvestment period, the transaction provided a replenishment period of up to six months or until 10.0% ($127.5 million) of the securitization cut off balance was reinvested. The initial 24-month reinvestment period ended in May 2023, as expected, while the replenishment period ended in November 2023, as expected.

As of the April 2024 remittance period, there is one specially serviced loan (2.5% of current pool balance), which is current. KBRA identified seven K-LOCs (26.1%), including the specially serviced loan. The K-LOCs include two of the top 10 loans:

  • Mansell Overlook (2nd largest, 7.5%)
  • The National (7th largest, 5.1%)

The remaining five K-LOCs represent 13.5% of the pool balance.

The transaction’s WA KLTV is 129.4%, compared to 126.4% at last review and 125.0% at securitization. The KDSC at Index Cap is 1.34x, compared to 1.05x at last review and 1.11x at securitization. The overcollateralization and interest coverage tests have each been satisfied during each distribution date since issuance.

At securitization, 19 loans (84.4%) had related companion participations representing unfunded future advance obligations, with an aggregate unfunded amount of $223.5 million. Currently, there are 16 loans (54.4%), with unfunded future advance obligations with an aggregate of $126.9 million unfunded.

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: 1004170

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