Press Release|CMBS

KBRA Affirms All Ratings for Greystone 2021-HC2

12 Dec 2024   |   New York

Contacts

KBRA affirms all of its outstanding ratings for Greystone 2021-HC2, a CRE CLO transaction with a three-year reinvestment period expiring in December 2024. The affirmations follow a surveillance review of the transaction, which has exhibited an overall improvement in loan performance since securitization as many of the properties are nearing/achieving their stabilization plans. However, the magnitude of the changes does not warrant ratings adjustments at this time.

At the time of this review, the total collateral balance is $450.0 million, which is comprised of 17 first mortgage loans secured by 44 properties and $11.7 million of cash collateral. During the remainder of the transaction’s reinvestment period, which ends in December 2024, the issuer can continue to acquire previously unidentified whole loans and senior participations with principal proceeds from the mortgage assets, provided such assets satisfy the reinvestment criteria and eligibility criteria.

As of the November 2024 remittance period, there is one loan (1.4% of the loan pool balance) that is non-performing matured balloon. The loan is expected to be extended. The transaction’s WA KLTV is 126.0%, compared to 140.7% at last review and 156.1% at securitization. The KDSC at Index Cap is 1.25x, compared to 1.14x at last review and closing. The overcollateralization and interest coverage tests have each been satisfied during each distribution date since issuance.

To access ratings and relevant documents, click here.

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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) 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: 1007230

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