KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the January 2022 servicer reporting period. The delinquency rate came in 40 basis points (bps) lower than in December. The rate resumed its downward trajectory after increasing 30 bps last month, which had broken the streak of month-over-month (MoM) decreases since a June 2020 peak of 8.2%.

The delinquency rate for all major property type categories improved MoM except for multifamily, which recorded a slight uptick in the delinquency rate, to 1.6% from 1.5% in December. Office recorded the highest delinquency decrease (60 bps), followed by lodging (50 bps) and retail (40 bps). Two of the larger office loans that had first become delinquent last month were reported current in January: the $1.2 billion 245 Park Avenue and $240 million 181 West Madison loans.

For the conduit universe, delinquencies decreased to 4.6%, down 20 bps from November 2021 after increasing to 4.9% in December 2021. In January, the amount of conduit loans in special servicing decreased for the ninth consecutive month, to $16 billion from $16.6 billion in December.

Click here to view the report.

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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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