KBRA, a major credit rating agency, published its August 2025 CMBS Trend Watch report. The report indicates a significant increase in commercial mortgage-backed securities (CMBS) issuance.
Issuance is up considerably compared to the same period last year. This growth is attributed to several factors, including the possibility of lower borrowing costs. The Federal Reserve‘s indication of a potential rate cut in mid-September could further fuel this trend.
Single-borrower (SB) deals have been particularly prominent. They accounted for a large majority of deals in August. Analysts predict this trend may continue into September, with a significant number of SB deals anticipated. Other deal types, including conduit, CRE collateralized loan obligations (CLO), and agency deals, are also expected.
KBRA‘s August activities included the presale of three deals totaling $1.5 billion. These included two SB deals and one single-family rental (SFR) deal. The agency also conducted surveillance activities, reviewing ratings for numerous securities across various transaction types. The vast majority of ratings were affirmed, with a smaller percentage downgraded or upgraded.
The August report also features summaries of recent KBRA research publications. These publications cover a range of topics relevant to the CMBS market. This includes research on servicer advances, conduit CMBS defaults, conduit subordination, CMBS loss compendium updates, managed CRE CLO churn rates, office loan credit quality, data center structures, and CMBS loan performance trends.
KBRA is recognized as a qualified rating agency in several jurisdictions, including the U.S., EU, UK, and Taiwan. Its ratings are used for regulatory capital purposes in multiple locations. The agency provides a full suite of credit rating services for investors. Contact information for several key KBRA personnel, including Solomon Mankin, Larry Kay, Aryansh Agrawal, and Andrew Foster, is available in the report.
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