KBRA Assigns Preliminary Ratings to LBTY 2026-225L

NEW YORK–(BUSINESS WIRE)–#creditratingagency–KBRA announces the assignment of preliminary ratings to seven classes of LBTY 2026-225L, a CMBS single-borrower securitization. The collateral for the transaction will be a $800.0 million fixed rate, interest-only mortgage loan. The loan is expected to have an initial five-year term and will require monthly interest-only payments. The loan will be secured by the borrower’s leasehold interest in 225 Liberty, a 44-story, Class-A, LEED Gold certified office tower containing 2.4 million sf. The building is located in the Financial District of New York City’s borough of Manhattan. The property was developed in 1987 and acquired by the sponsors in 1996 and as of November 2025, the property was 90.1% leased to 19 unique tenants. The five largest tenants by base rent consist of Brookfield (27.0%), Confidential Tenant (14.9%), People Inc (13.3%), Invesco (10.1%), and Bank of America (6.7%). Together, these top five tenants account for 72.1% of total base rent and 65.8% of the total sf.

KBRA’s analysis of the transaction included a detailed evaluation of the property’s cash flows using our North American CMBS Property Evaluation Methodology and the application of our North American CMBS Single Borrower & Large Loan Rating Methodology. In addition, KBRA also relied on its Global Structured Finance Counterparty Methodology for assessing counterparty risk in this transaction and its ESG Global Rating Methodology, to the extent deemed applicable.

The results of our analysis yielded a KBRA net cash flow (KNCF) for the subject of approximately $61.7 million, which is 17.3% below the issuer’s NCF, and a KBRA value of $747.5 million, which is 42.9% below the appraiser’s value. The resulting in-trust KBRA Loan to Value (KLTV) is 107.0%. In our analysis of the transaction, we also reviewed and considered third party engineering, environmental, and appraisal reports, the results of our site inspection of the property, and legal documentation review.

To access ratings and relevant documents, click here.

Click here to view the report.

Methodologies

• CMBS: North American CMBS Property Evaluation Methodology
• CMBS: North American CMBS Single Borrower & Large Loan Rating Methodology
• Structured Finance: 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), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1013303

Contacts

Analytical Contacts

Nicholas Kuhn, Associate (Lead Analyst)
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Michael McGorty, Senior Director
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Nitin Bhasin, Senior Managing Director, Global Head of CMBS (Rating Committee Chair)
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Business Development Contact

Andrew Foster, Senior Director
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