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Kroll Bond Rating Agency Announced Methodology for Rating U.S. CMBS

Kroll Bond Rating Agency (KBRA) announced the publication of its methodology for rating U.S. CMBS Multi-Borrower transactions.  The methodology is intended to be used for multi-borrower pools of commercial real estate (CRE) loans that have been originated for securitization.  It will typically be used for transactions with at least 30 loans that are secured by properties that are diverse relative to the geographic location, property type and sponsor.

KBRA developed the criteria with several guiding principles, the most important of which was to base the underlying assumptions on actual CRE performance data, including that from the most recent economic downturn, the “Great Recession”.

Source: Marketwatch.com

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