Kroll Bond Rating Agency Europe Limited (KBRA) releases research regarding Kanaal CMBS Finance 2019, a KBRA-rated commercial mortgage-backed security (CMBS) transaction with exposure to retail assets. Of the two loans that comprise the transaction's collateral, the Big 6 Loan (50.4% of the transaction balance) has retail exposure of 78.1% of the respective allocated loan amount.
The Dutch government recently announced measures intended to reduce the spread of the coronavirus (COVID-19) pandemic, which has affected retailers across the country. While some leeway has been given to shops and markets, many multinational retailers have shuttered all of their stores for the foreseeable future. For those stores remaining open, most are operating with truncated schedules and/or restrictions governing the number of people allowed in the stores at any given time. While it is difficult to ascertain the opening status of every tenant, based on KBRA's analysis, tenants accounting for approximately 46.5% of the total collateral area of the Big 6 Loan remain open, 26% are closed, and 21.6% are vacant, with the status of the remaining 6% indeterminable.
As a result, KBRA assigns a KBRA Performance Outlook (KPO) of Underperform for the Big 6 Loan, which serves as collateral for the Kanaal CMBS Finance 2019 transaction. A KPO is an assessment of Outperform, Perform, or Underperform based on recent and expected collateral performance.
As events surrounding the crisis unfold, our thoughts are with the individuals and families who have been affected by the virus.
Click here to view the report.
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About KBRA and KBRA Europe
KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA. Kroll Bond Rating Agency Europe Limited is located at 6-8 College Green, Dublin 2, Ireland.
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Contacts:
Analytical
Matthew Horner, Director
+353 1 588 1240
mhorner@kbra.com
Yee Cent Wong, Senior Managing Director
+1 (646) 731-2374
ywong@kbra.com
Business Development
Mauricio Noé, Senior Managing Director, Head of Europe
+44 208 148 1010
mnoe@kbra.com
