Press Release|CMBS
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KBRA Upgrades Five Ratings and Affirms Two Ratings for BX 2021-XL2

10 Oct 2025   |   New York

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KBRA upgrades the ratings for five classes of certificates and affirms two ratings for BX 2021-XL2, a CMBS single-borrower transaction. The rating actions follow a surveillance review of the transaction, which has exhibited improved performance since securitization as evidenced by a lower KLTV resulting from property releases and growth in KNCF.

At securitization, the transaction collateral was a $2.2 billion ($128 per sf) non-recourse, first lien mortgage loan secured by the borrower’s fee simple and leasehold interests in 121 properties, consisting of 17.0 million sf located across 10 states. Since closing, 40 properties have been released with a total paydown of $700.1 million, resulting in a $1.2 billion ($119 per sf) loan collateralized by 81 properties, comprising 10.1 million sf located in eight states as of the September 2025 remittance period. The properties are primarily industrial assets (99.6%), consisting mostly of warehouse and light industrial properties. The floating-rate, interest-only loan had an initial term of two years and allows for three one-year extension options. According to the master servicer, the borrower plans to exercise its third and final option to extend the loan’s maturity date to October 2026.

KBRA analyzed the cash flow for the properties utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $72.5 million and a KBRA Value of $1.0 billion ($100 per sf). The resulting in-trust KLTV is 118.0%, compared to 124.9% at KBRA’s last ratings change in October 2024 and 168.6% at securitization. KBRA maintains a KPO of Outperform for the loan.

Details concerning the classes with rating changes are as follows:

  • Class C to AAA (sf) from AA (sf)
  • Class D to AA (sf) from AA- (sf)
  • Class E to A+ (sf) from A (sf)
  • Class F to BBB+ (sf) from BBB (sf)
  • Class G to BB+ (sf) from BB (sf)

To access ratings 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), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1011741