Press Release|CMBS
View PDF

KBRA Affirms All Ratings for ESA 2021-ESH

3 Jul 2024   |   New York

Contacts

KBRA affirms all outstanding ratings for ESA 2021-ESH, a CMBS single-borrower transaction. The affirmations follow a surveillance review of the transaction, which has exhibited improved performance since securitization. However, the change in performance does not warrant rating adjustments at this time.

At securitization, the transaction was secured by a $4.65 billion first-lien whole mortgage loan backed by a portfolio of 560 extended-stay hotels. Since closing, the borrower has released 71 properties—51 since last review—reducing the portfolio to 489 hotels and the outstanding loan balance to $4.22 billion as of June 2024. The floating-rate, interest-only loan had an initial term of two years plus three one-year extension options. The borrower used its first option last July and extended the maturity to July 2024. The borrower intends to exercise its second option and extend maturity to July 2025, according to the servicer.

KBRA analyzed the cash flow for the properties utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $500.0 million and a KBRA value of $4.24 billion ($77,558 per key). The resulting in-trust KLTV is 99.5%, in line with 99.9% at last review but down from 112.4% at securitization. KBRA maintains a KPO of Perform on the loan.

To access rating and relevant documents, click here.

Click here to view the report.

Related Publication

Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA 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 U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. 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.

Doc ID: 1004932