KBRA Credit Profile (KCP) Releases Special Report: Coronavirus (COVID-19) Impact: CMBS Exposure to Las Vegas Strip

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) releases a special report, Coronavirus (COVID-19) Impact: CMBS Exposure to Las Vegas Strip, which examines CMBS exposure to lodging, retail, and showroom properties located on the Las Vegas Strip.

The report is part of our continued effort to assess the potential impacts of COVID-19 to commercial real estate across various markets, especially those that are heavily dependent on tourism, such as Las Vegas. Throughout the report, we provide historical tourism, lodging, and gaming trends for Las Vegas and identify CMBS loans secured by lodging, retail, and showroom properties located along or in the vicinity of the Las Vegas Strip. While the duration and reach of the epidemic, as well as the severity of its impact on tourism and gaming in Las Vegas remain unknown, we also attempt to quantify the risk to CMBS loans secured by hotel casinos on the Las Vegas Strip by stressing net cash flow for select properties.

Total CMBS exposure to Las Vegas retail, lodging, and showroom property types consists of 183 properties ($10.2 billion by allocated loan amount (ALA)) that serve as collateral for 161 loans securitized in 166 transactions. Approximately 82% ($8.4 billion by ALA) of the CMBS exposure to Las Vegas is concentrated along or in the vicinity of the Las Vegas Strip, the stretch of South Las Vegas Boulevard known for its hotel resorts and casinos. The Las Vegas Strip is home to eight lodging properties ($4.5 billion by ALA) that serve as collateral for eight loans securitized in 14 CMBS transactions, with additional notes from multiple loans expected to be contributed to one or more future securitizations. Additionally, there are 30 retail properties located on the Las Vegas Strip that are secured by 23 loans ($3.3 billion) in 54 transactions.

To read the full report, click here.

We will continue to monitor ongoing developments related to the coronavirus outbreak and report on the potential impact to CMBS collateral within our monthly KCP report for each transaction. For subscribers of the KCP platform, a list of loans with exposure to the Las Vegas Strip can be accessed by clicking here.

Related Publications: (available at kcp.kbra.com)

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About KBRA Credit Profile

KCP is a research service and nothing herein or otherwise provided by KCP shall be construed as a rating. Any rating opinions, analysis, projections, observations, data or other items constituting part of any information provided or distributed by KCP or KBRA are and must be construed solely as statements of opinion and not statements of fact.

About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. 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, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Analytical Contacts:

Paul Jaworski, Analyst

+1 (215) 882-5493

pjaworski@kbra.com

Maverick Force, Associate

+1 (215) 882-5904

mforce@kbra.com

Russ Barber, Associate Director

+1 (215) 882-5873

rbarber@kbra.com

Marc McDevitt, Senior Director

+1 (215) 882-5857

mmcdevitt@kbra.com

Business Development Contact:

Marc Iadonisi, Senior Sales Director

+1 (215) 882-5877

miadonisi@kbra.com

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