KBRA Affirms All Ratings for BX 2022-PSB
26 Jul 2024 | New York
KBRA affirms all outstanding ratings for BX 2022-PSB, a CMBS single borrower transaction. The affirmations follow a surveillance review of the transaction, which has exhibited a slight improvement in performance compared to securitization. However, the change in performance does not warrant rating adjustments at this time.
At securitization, the transaction was secured by a $2.73 billion first-lien mortgage loan secured by the borrower’s fee simple interests in 138 properties; however, 28 properties have since been released between November 2022 and July 2024, reducing the portfolio to 110 properties and the outstanding loan balance of $2.18 billion as of July 2024. The floating-rate, interest-only loan has an initial two-year term ending in August 2024 with three, one-year extension options. A maturity notice has been sent to the borrower but servicer has not provided indication if the borrower plans to exercise its first option to extend. It is anticipated the loan will be extended. If the loan is not extended and does not pay at maturity KBRA will reassess and determine if any rating or watch actions are needed.
KBRA analyzed the cash flow for the properties utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $152.2 million and a KBRA value of $1.91 billion ($142 per sf). The resulting in-trust KLTV is 114.0%, compared to 116.3% at last review and 123.3% at securitization. KBRA maintains a KPO of Perform on the loan.
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