KBRA releases research on potential CMBS, Freddie Mac, and CRE CLO exposure in our rated universe to Hurricane Ian, which made landfall along Florida’s southwestern coast on September 28 before making landfall a second time near Georgetown, South Carolina. Initial news reports indicate massive storm damage, some of the worst in U.S. history, with estimated insured damages ranging from $20 billion to $65 billion.

The Federal Emergency Management Agency (FEMA) on September 30 issued a disaster declaration for all of Florida’s and South Carolina’s counties, authorizing them for public assistance. As of October 3, FEMA has identified 19 of Florida’s counties as greatly impacted and eligible for individual assistance and public assistance (the IA counties). The report examines loans across KBRA-rated CMBS, Freddie Mac, and CRE CLO transactions that are collateralized by properties in the greatly impacted areas. Based on our analysis, 320 KBRA-rated deals have underlying loan collateral within the IA counties.

At this time, the full severity of property damage in the greatly impacted counties is unknown. Although potential losses may be fully or partially mitigated by insurance policies, the degree of coverage may vary. KBRA will continue to monitor the situation and work with loan servicers to determine the extent of the damage and any potential ratings impact. As events continue to unfold, our thoughts are with the individuals and families affected by the hurricane.

Click here to view the report.

About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

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