KBRA Affirms All Ratings for Hamlet 2020-CRE1
31 May 2024 | New York
KBRA affirms all of its outstanding ratings for Hamlet 2020-CRE1, a $1.6 billion CMBS securitization collateralized by 21 fixed rate first mortgage loans that are secured by 46 properties. The affirmations follow a surveillance review of the transaction, which has exhibited a worsening in pool performance since securitization, including loans being identified as K-LOCs. However, the magnitude of the changes does not warrant rating adjustments at this time.
As of the May 2024 remittance period, none of the loans are specially serviced; however, one loan (7.3%) failed to payoff at its May 2024 maturity date and is non-performing matured balloon. KBRA has identified six loans (40.6%) as K-LOCs, including the loan that did not pay off at maturity. These include three top 10 loans (32.6%) including the largest, 3rd largest, and 4th largest loans. Of these, the 3rd largest loan (12.0%) has an estimated loss severity (8.8%). One additional K-LOC (3.4%) has an estimated loss.
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 120.0%, compared to 122.8% at last review and 121.6% at securitization. The KDSC is 1.51x, compared to 1.50x at last review and 1.62x at securitization.
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