Executive Summary
This document sets forth Kroll Bond Rating Agency LLC and its rating affiliates’ (collectively, KBRA) methodology for analysing commercial mortgage backed securities (CMBS) in Europe. This methodology is intended for use in both the initial rating assignment and the ongoing monitoring of securities. Some or all of the elements of this document may also be leveraged to rate other types of transactions that include commercial real estate (CRE) assets, as well as CRE loans, which are further discussed in the Additional Considerations for Loan Ratings section of this report. This methodology was developed with the objective of producing credit ratings that perform in accordance with KBRA’s published rating definitions.
The defining characteristic of CRE securitisations is the non-homogeneous nature…