KBRA-Rated European CMBS Exposure to Wildfires in Spain and France

Severe wildfires across Spain and France have prompted large-scale evacuations and continue to threaten residential, commercial, and industrial property across several regions. In France, the most significant activity has been concentrated in the southwest, particularly the Gironde region near Bordeaux. In Spain, major fires have affected areas around Madrid and the neighbouring province of Avila, alongside incidents elsewhere in the country. Fuelled by prolonged heat, dry conditions, and shifting winds, the fires have led authorities to mobilise military and international firefighting support. News reports¹ indicate that more than 300,000 people had been evacuated across the two countries as of 27 July.

Across the KBRA-rated European commercial mortgage-backed securities (CMBS) transactions reviewed, KBRA has not identified any collateral properties within active wildfire perimeters or mandatory evacuation zones, and no physical damage or…