Executive Summary
This document describes KBRA’s methodology for rating North American commercial mortgage-backed securities (CMBS) that are comprised of pools of loans secured by one or more commercial real estate (CRE) properties. The methodology is intended for use where the pools exhibit diversity relative to loan count, and as a result may also exhibit diversity with respect to geographic location, property type, and/or loan borrower. The methodology is intended for use in both the initial rating assignment and ongoing monitoring process for securities that pay principal and interest or only principal. Securities that pay only interest are rated using KBRA’s Methodology for Rating Interest-Only Certificates in CMBS Transactions. Elements of this document may also be leveraged to rate other types of transactions and instruments that include CRE assets.
Multi-borrower transactions for which this…