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NEW YORK–(COMMERCIAL THREAD) – Kroll Bond Rating Agency (KBRA) announces seven categories of MHC Commercial Mortgage Trust 2021-MHC, a CMBS single-borrower securitization.
The collateral for the transaction is a $ 2.205 billion non-recourse first mortgage. The variable rate loan has an initial term of two years with three options for one year extension and requires monthly interest payments based solely on one month’s LIBOR. The loan is secured by the fee simple interest of borrowers in 124 Prefabricated Housing Communities (MHC) totaling 29,086 blocks and 771 RV sites located in 13 states. As of March 2021, the portfolio had an income occupancy rate of 88.5%.
KBRA’s transaction analysis included a detailed property cash flow valuation using our US CMBS property valuation methodology and the application of our US CMBS Single Borrower & Large Loan Rating methodology. In addition, KBRA also relied on its overall structured finance counterparty methodology to assess the counterparty risk in this transaction, to the extent deemed applicable.
The results of our analysis yielded a KBRA Net Cash Flow (KNCF) for the portfolio of approximately $ 129.2 million, or 5.3% less than the issuer’s NCF, and an aggregate value of KBRA. of approximately $ 1.661 billion, or 44.8% below the overall assessed portfolio. asset value. The resulting KBRA Loan to Value (KLTV) trust is 132.8%. In our analysis of the transaction, we have also reviewed and taken into account the technical, environmental and valuation reports of third parties; the results of our site inspection of the properties and review of legal documentation.
Click here to view the report. To access the assessments and relevant documents, click here.
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Disclosures
Further information on key credit considerations, sensitivity analyzes that examine the factors that may affect these credit ratings and how they might lead to an improvement or a downgrade, and ESG factors (when they are a factor). key to the change in credit rating or rating outlook) can be found in the full assessment report referenced above.
A description of all substantially significant sources that were used to prepare the credit rating and information about the method (s) (including significant models and sensitivity analyzes of the relevant key rating assumptions, if any) used to determine The credit rating is available in the Information Disclosure Form (s) located here.
Here you will find information about the meaning of each rating category.
Further information relating to this rating measure is available in the information disclosure form (s) referenced above. Additional information regarding KBRA’s 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 United States Securities and Exchange Commission as NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a credit rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a credit rating agency with the UK Financial Conduct Authority under the temporary registration regime. In addition, KBRA is appointed as the designated rating agency by the Ontario Securities Commission for issuers of asset-backed securities to file a simplified prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating provider.
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