KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the May 2022 servicer reporting period. Driven by a drop in delinquencies across all major property categories, the decline in the overall rate accelerated after a 19-basis point (bp) drop in April and no change in March. This is the first time the rate has fallen below 3% since peaking at 8.2% in June 2020.

Retail (5.12%) and mixed-use (3.56%) reported the most significant month-over-month (MoM) delinquency reductions (down 60 bps and 46 bps, respectively), followed by industrial (0.1%, -23 bps). The resolution, modification, and change in payment status on several regional mall loans helped the retail sector lead the MoM decline for the first time. Notable mall loans include the $152.2 million Mall St. Matthew, which was modified and extended, and the real estate owned (REO) Southland Mall, which formerly secured a $67.5 million loan, and was disposed of without a loss.

Click here to view the report.

Related Publications

• KBRA’s Global Rating Stability Study: 2011-2021
• CMBS Trend Watch: April 2022
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About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

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