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KBRA Upgrades Three Ratings and Affirms All Other Ratings for Greystone 2021-FL3

25 Jul 2025   |   New York

Contacts

KBRA upgrades the ratings of three notes and affirms all other outstanding ratings for Greystone 2021-FL3, a CRE CLO transaction with a three-year reinvestment period. The rating actions reflect the increased subordination levels due to deleveraging from loan payoffs and amortization, as the transaction balance has paid down by $417.9 million (46.4% of the original transaction balance).

At the time of this review, the total collateral balance is $482.1 million, which is comprised of 16 first mortgage loans secured by 28 properties. During the transaction’s reinvestment period, which ended in August 2024, 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.

As of the July 2025 remittance period, there is one loan (16.6% of the current pool balance) which is performing matured balloon. According to servicer commentary, a new loan extension is being worked on with the borrower. KBRA has identified one K-LOC, Baltimore Portfolio (4.2%), which is not within the Top 10 nor does it have an estimated loss.

The transaction’s WA KLTV is 130.4%, compared to 135.3% at last review and 136.1% at securitization. The KDSC at Index Cap is 1.06x, compared to 1.06x at last review and 1.01x at closing. The overcollateralization and interest coverage tests have each been satisfied during each distribution date since issuance.

Details concerning the classes with ratings changes are as follows:

  • Class B to AA+ (sf) from AA- (sf)
  • Class C to AA- (sf) from A- (sf)
  • Class D to A- (sf) from BBB (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: 1010537