KBRA is pleased to announce the assignment of ratings to eight classes of PFP 2023-10, a $901.7 million CRE CLO with limited loan acquisition ability.

Initially, the transaction is expected to be collateralized by 21 mortgage loans with an aggregate cutoff date in-trust balance of $752.7 million and $149.0 million of cash collateral for the anticipated acquisition of four pre-identified delayed-close loans to be acquired within 90 days following the closing date. During the 24-month period post-closing, the transaction permits reinvestment of certain proceeds for the acquisition of future funded companion loan participations related to the transaction’s existing collateral. Additionally, the transaction includes a feature which provides the sponsor with the ability to effectuate modifications to certain performing loans.

This transaction also includes a par value (overcollateralization or OC) test and an interest coverage (IC) test. If either test is not satisfied on any determination date, on the following payment date, interest proceeds (and to the extent interest proceeds are insufficient, principal proceeds) remaining after payment of interest on the Class E notes will be used to pay down the principal balances of the Class A through E notes in sequential order, in each case until the applicable test(s) are satisfied or the affected notes are paid in full.

To access ratings and relevant documents, click here.

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Related Publications

• U.S. CMBS Multi-Borrower Rating Methodology
• U.S. CMBS Property Evaluation Methodology
• Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

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.

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