KBRA Affirms All Ratings for FS Rialto 2021-FL2
2 Aug 2024 | New York
KBRA affirms all of its outstanding ratings for FS Rialto 2021-FL2, a CRE CLO transaction with a 24-month reinvestment period. The reinvestment period ended in April 2023, as expected. The affirmations follow a surveillance review of the transaction, which has exhibited stable pool performance since securitization.
At the time of this review, the total collateral balance is $731.4 million, which is comprised of 24 first mortgage loans secured by 39 properties. As of the July 2024 remittance period, there are two specially serviced loans (9.4% of the current pool balance), both of which are matured non-performing balloon. KBRA identified three K-LOCs (11.3%), none of which have immediate estimated losses and include the specially serviced loans. These include two top 10 loans:
- The 903 Apartments (9th largest, 4.7%)
- 198 Utah Street (10th largest, 4.7%)
The transaction’s WA KLTV is 126.5%, compared to 127.6% at last review and 128.1% at securitization. The KDSC at Index Cap is 1.15x, compared to 1.11x at last review and 1.08x at securitization. The overcollateralization and interest coverage tests have each been satisfied during each distribution date since issuance.
At securitization, 19 loans (77.2% of the issuance loan pool) had related companion participations representing unfunded future advance obligations, with an aggregate unfunded amount of $88.9 million. In total, there are currently 18 loans (69.8% of the current balance) with unfunded future advance obligations with an aggregate of $99.7 million unfunded.
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