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

11 Sep 2026   |   New York

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KBRA downgrades the ratings of five classes of certificates and affirms all other outstanding ratings for BBCMS 2021-C12, a $1.0 billion CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited a worsening in pool performance since KBRA's last ratings change in September 2025. The downgrades reflect KBRA's estimated losses for three K-LOCs (8.4% of the pool balance) and the resulting loss adjusted C/E levels.

As of the August 2026 remittance period, there are three (8.4%) specially serviced assets, comprising one asset (6.2%) in foreclosure and two loans (2.2%) that are over 90 days delinquent. KBRA identified seven loans (16.8%) as K-LOCs, including the specially serviced assets. The K-LOCs are depicted in the table below:

Loss Given Default (000s) Loss Severity 3 1100 & 820 First Street NE OF $65,000 6.2% Y FCL N Foreclosure 06/02/2025 $26,118 40.2% 5 Parkshore Plaza OF $43,600 4.2% N C N Occupancy 07/31/2026 - - 17 Glendale Industrial IN $19,161 1.8% N C N DSCR 02/10/2026 - - 20 Sorrel River Ranch LO $19,000 1.8% N C N Occupancy 01/09/2025 - - 21 Hayes Court MF $17,100 1.6% Y 90+ N Specially Serviced 06/26/2023 $5,714 33.4% 51 CVS Florida Portfolio RT $6,000 0.6% N C N Recent Delinquency 03/09/2026 - - 31 Courtyard by Marriott ‐ Lake Charles, LA LO $5,081 0.5% Y 90+ N Property Damage 03/15/2023 $3,681 72.4% Total K-LOCs $174,943 16.8% $35,513 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

Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 103.3%, compared to 107.5% at last review and 103.8% at securitization. The KDSC is 2.18x, which compares to 2.10x at last review and 2.19x at securitization.

Details concerning the classes with rating changes are as follows:

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

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