NEW YORK–(BUSINESS WIRE)–#creditratingagency–KBRA Credit Profile (KCP), a division of KBRA Analytics, attended the Commercial Real Estate Finance Council’s (CREFC) annual High-Yield, Distressed Assets, & Servicing Conference, held in New York City on March 4. Over 300 commercial real estate (CRE) professionals attended the event, which comprised five panels and a one-one-one discussion.
Key Takeaways
- Persistent inflation concerns and the possibility of stagflation continue to weigh on market sentiment, highlighting the difficulty in predicting near-term interest rate moves.
- With a wave of maturities looming, attendees urged borrowers and servicers to initiate discussions early to help mitigate default risk and create opportunities for pre-emptive workouts.
- Office-to-residential conversions face feasibility challenges, while construction financing, especially for large projects, remains tight.
- Office delinquencies continue to lead defaults, and multifamily continues to attract investors even as margins are pressured by rising costs.
- Private credit providers are stepping in as banks reduce their CRE exposure, but underwriting standards have become more selective, and pricing remains elevated.
- Amid euphoric sentiment for data centers, panelists noted the importance of due diligence and prudent underwriting.
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About KBRA
KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions.
Doc ID: 1008449
Contacts
Sam Nadol, Analyst
+1 215-882-5867
sam.nadol@kbra.com
Vayu Sarangam, Analyst
+1 215-882-5419
vayu.sarangam@kbra.com
Daniel Greathouse, Senior Analyst
+1 215-882-5439
daniel.greathouse@kbra.com
Nick Heller, Associate Director
+1 215-882-5426
nick.heller@kbra.com
