KBRA Assigns Ratings to BXMT 2021-FL4

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of ratings to 11 classes of BXMT 2021-FL4, a $950.0 million CRE CLO. The transaction includes a 180-day ramp-up period as well as the ability to acquire and sell (rebalancing provision) loan participations related to the transaction collateral. Additionally, the transaction includes a feature that provides the sponsor with the ability to effectuate significant modifications to performing loans. The rebalancing provision, which has not been present in prior KBRA rated CRE CLO transactions, allows the holder of the preferred shares to buy one or more collateral interests out of the trust at par to facilitate the satisfaction of the acquisition criteria relating to a proposed acquisition of a pari passu companion participation.

Initially, the transaction will be collateralized by 30 loan participations with an in-trust balance of $901.0 million, $49.0 million of proceeds for the anticipated acquisition of one delayed close asset, and $50.0 million of cash that may be used to acquire previously unidentified assets during the ramp-up period.

This transaction includes interest coverage and par value (overcollateralization or OC) tests. If either test is not satisfied on any determination date, on the following payment date, interest proceeds remaining after interest is paid to the Class E (and E-E and E-X, if any) notes will be used to pay down the principal balances of the Class A through E (and E-E and E-X, if any) notes in sequential order until the tests are satisfied or the Class A through E (and E-E and E-X, if any) notes are paid in full. If available interest proceeds are insufficient to satisfy the tests or pay down the applicable classes of notes, available principal proceeds will be used for such purpose.

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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 pursuant to the Temporary Registration Regime. 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.

Contacts

Analytical Contacts

Patrick McQuinn, Senior Director (Lead Analyst)

+1 (646) 731-2445

patrick.mcquinn@kbra.com

Michael B. Brown, Managing Director

+1 (646) 731-2307

michael.b.brown@kbra.com

Nitin Bhasin, CFA, Senior Managing Director (Rating Committee Chair)

+1 (646) 731-23334

nitin.bhasin@kbra.com

Business Development Contact

Michele Patterson, Managing Director

+1 (646) 731-2397

michele.patterson@kbra.com

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