KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the July 2022 servicer reporting period. The delinquency rate among KBRA-rated U.S. commercial mortgage-backed securities (CMBS) resumed its downward trajectory, falling 10 basis points (bps) from the prior month to 2.91%. The delinquency rate posted a 15-bp increase in June, which was only the second time it had risen since reaching a COVID-era peak of 8.2% in June 2020. As with the economic uncertainty created by the backdrop of high inflation and rising interest rates, we may not see clear trends in the delinquency rate for the next few months.

Lodging (4.82%, -48 bps), retail (5.38%, -18 bps), and multifamily (1.09%, -16 bps) recorded the highest delinquency improvements, while mixed-use, office, and industrial each generated a monthly increase. A look at the combined percentage of delinquent and specially serviced loans shows that the rate also declined 6 bps to 4.58%. Lodging (6.95%) had the most significant month-over-month decrease (-96 bps), while retail (8.16%) increased 32 bps.

Click here to view the report.

Related Publications

• KBRA CMBS Loss Compendium Update: June 2022
• CMBS Servicing and Modifications During COVID: A Two Year View
• CMBS Trend Watch: June 2022
• CMBS Loan Performance Trends: June 2022

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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