Press Release|CMBS

KBRA Affirms All Ratings for BX 2022-PSB

26 Jul 2024   |   New York

Contacts

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.

To access rating 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: 1005246

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