KBRA Affirms All Ratings for BDS 2021-FL9
29 Aug 2024 | New York
KBRA affirms all of its outstanding ratings for BDS 2021-FL9, a CRE CLO transaction which had a two-year reinvestment period. The affirmations follow a surveillance review of the transaction, which has exhibited stable pool performance since the last rating change in August 2022.
At the time of this review, the total collateral balance is $562.7 million which is comprised of 19 first mortgage loans secured by 25 properties. During the transaction’s reinvestment period, the issuer could 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. The reinvestment period ended in October 2023, as expected.
As of the August 2024 remittance period, there are no delinquent or defaulted loans. However, five loans (34.8%) have been identified as K-LOCS, none of which have estimated losses. This includes:
- The Meadows (largest, 11.6% of the collateral balance)
- Emerald Springs (2nd largest, 10.9%)
- The Atrium (5th largest, 7.1%)
- Mission James Place (3.4%)
- Glass Lab (1.9%)
The transaction's WA KLTV is 129.8%, compared to 136.3% at securitization. The KDSC at Index Cap is 0.94x, in line with securitization. The overcollateralization and interest coverage tests have each been satisfied during each remittance date since closing.
At securitization, 24 loans (82.4% of total collateral balance) had related companion participations representing unfunded future advance obligations, with an aggregate unfunded amount of $76.7 million. As of August 2024, 13 loans have an aggregate unfunded future advance component of $31.5 million.
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