Press Release|CMBS

KBRA Affirms All Ratings for MHC Commercial Mortgage Trust 2021-MHC

19 Apr 2024   |   New York


KBRA affirms all of its outstanding ratings for MHC Commercial Mortgage Trust 2021-MHC, a $1.85 billion CMBS single borrower transaction. The transaction has benefited from increases in credit enhancement levels due to deleveraging from property prepayments; however, the magnitude of changes does not warrant ratings adjustments at this time.

The collateral at issuance was the borrowers’ fee simple interests in 124 manufactured housing communities (MHCs) totaling 29,086 pads and 771 RV sites located across 13 states. Since last review, 28 properties have been released. The current collateral is the borrowers’ fee simple interest in 96 MHCs totaling 23,936 pads and 722 RV sites located across 11 states. The floating rate loan was structured with an initial two-year term with three one-year extension options. In association with the first extension option executed effective April 9, 2023, the interest rate benchmark was converted to one-month term SOFR. The second extension option was executed April 9, 2024, and a new interest rate cap agreement was obtained with a strike rate of 4.34%. The loan requires monthly interest-only payments based on one-month SOFR plus the initial spread of 1.89% and a 0.11% adjusted SOFR replacement spread.

KBRA analyzed the cash flow for the properties utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $116.6 million and a KBRA value of $1.50 billion ($62,460 per pad), representing a 7.2% increase per pad from securitization, net of property releases. The resulting in-trust KLTV is 123.7% compared to 129.6% at last review and 132.8% at securitization. KBRA maintains a KPO of Perform for the loan.

To access rating and relevant documents, click here.

Click here to view the report.

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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: 1004006

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