Fitch Ratings assigns final ratings to BRSP 2026-FL4 CMBS notes

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Fitch Ratings BRSP 2026-FL4 CMBS

Highlights

Fitch Ratings assigns final ratings with Stable Outlooks to six BRSP 2026-FL4 CMBS notes, including AAA for the $576.0 million class A and $105.6 million class A-S tranches.
BRSP 2026-FL4 CMBS are backed by 29 collateral interests across 38 commercial properties, with an aggregate principal balance of $860,256,109 as of the cutoff date.
Fitch calculates aggregate net cash flow of $43.7 million, representing a 6.4% shortfall versus the issuer's underwritten net cash flow of $46.7 million.

Ratings assigned across senior and mezzanine classes

As reported by Fitch Ratings, the agency assigns final ratings and Stable Outlooks to six classes of BRSP 2026-FL4 notes, including AAA ratings for the $576.0 million class A and the $105.6 million class A-S tranches.

Fitch also assigns an 'AA-sf' rating to the $67.2 million class B notes, an 'A-sf' rating to the $51.6 million class C notes, a 'BBBsf' rating to the $30.0 million class D notes, and a 'BBB-sf' rating to the $14.4 million class E notes. The agency does not rate the class F, class F-E, class F-X, class G, class G-E, class G-X notes or the $61.2 million in preferred shares.

The notes are collateralized by 29 collateral interests made up of loans, promissory notes and participations secured by 38 commercial properties. The aggregate principal balance stands at $860,256,109 as of the cutoff date and excludes about $68.6 million of expected future funding.

Pool structure and cash flow assumptions

The transaction includes one delayed-close collateral interest loan totaling about $43.0 million, which is expected to close or be modified within 90 days of the settlement date. It also contains $99,743,891 of ramp cash earmarked for the purchase of ramp-up collateral interests during the 180 days following the closing date.

KeyBank National Association serves as servicer, while BrightSpire Capital Asset Management, LLC acts as special servicer. Wilmington Trust, National Association is the trustee and Computershare Trust Company, National Association is the note administrator, with the deal following a sequential-paydown structure.

In its analysis, Fitch performs cash flow reviews on 24 loans representing 91.7% of the pool by balance. The agency calculates aggregate net cash flow of $43.7 million, 6.4% below the issuer's aggregate underwritten net cash flow of $46.7 million, excluding loans for which Fitch uses an alternate value analysis.

Our earlier coverage of Fitch’s ratings on Hainan Rubber’s proposed subordinated perpetual sustainable securities explained how the BBB- assessment reflects the instruments’ lower ranking in the capital structure and the issuer’s ability to defer coupons. We also summarized Fitch’s view of the group’s leverage and liquidity profile, including the role of state support and funding access in underpinning the company’s credit picture.

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