Press Release|CMBS

KBRA Withdraws One Rating and Affirms All Other Ratings for Starz Mortgage Securities 2021-1 DAC

11 Apr 2024   |   London


KBRA withdraws the rating on one class of notes and affirms all other outstanding ratings for Starz Mortgage Securities 2021-1 DAC, a static commercial real estate collateralised loan obligation (CRE CLO) transaction. The rating actions follow a surveillance review of the transaction. Although the transaction has benefitted from an increase in subordination levels due to portfolio deleveraging from the repayment of six loans and amortisation, this is offset by concerns about refinancing risk for the three remaining loans in the transaction, two of which KBRA has previously identified as K-LOCs.

The transaction has no reinvestment ability but allows the issuer to modify performing loans and sell credit risk and defaulted assets. At closing, the transaction was collateralised by nine commercial mortgage loans: six of the loans were GBP-denominated with an aggregated cut-off balance of £185.4 million and three of the loans were EUR-denominated with an aggregate balance of €39.1 million. At the time of this review, six loans have paid off in full. The transaction is currently collateralised by three loans: two are GBP-denominated with a current balance of £50.9 million (72.6% reduction since securitisation) and one is EUR-denominated with a current balance of €12.0 million (69.3% reduction).

The transaction features note protection tests, which have been satisfied during each remittance period since closing. The transaction structure initially featured a modified pro-rata structure but principal payments from the loans are now paying the notes on a sequential basis.

KBRA utilised information obtained from the servicer from February 2024, which included updated property, loan, and note balances from the period.

To access rating and relevant documents, click here.

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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.

This credit rating is endorsed by Kroll Bond Rating Agency Europe Limited for use in the European Union. Information on a credit rating’s endorsement status is available on its rating page at

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

There are certain issuers, entities or transactions rated by KBRA Europe or KBRA UK that may be or have relationships with Shareholders and/or Shareholder-Related Companies, as that term is defined in KBRA’s Shareholder and Shareholder Related Companies for KBRA Europe and KBRA UK Policy and Procedure. Relevant disclosure information may be found here.


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. Kroll Bond Rating Agency UK is located at 1 Connaught Place, 2nd Floor London, England.

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