Scope Ratings is calling for comments on its proposed update to the CRE loan and CMBS rating methodology until 13/08/2021.

The proposed methodology can be downloaded here.

This updated methodology includes the following adjustments:

1. Clarifications and additional assumptions on the sponsor and business plan analysis
2. Amendment of the tenant credit quality framework for CRE loans and CMBSs
3. Introduction of initial and reversionary yields
4. Simplification of the foreclosure timing framework
5. Introduction of a section on rating agency confirmation
6. Introduction of a credit tenant lease approach
7. Update of the diversification discount rate calculation
8. Update of ESG guidelines
9. Update of illustrative sensitivity test and assumptions
10. Update of CRE loan and CMBS data guidelines
11. Editorial changes

Scope invites issuers, investors and other interested parties to comment on the methodology by 13/08/2021 as part of the agency’s ongoing commitment to transparency and an open dialogue with market participants.

Please send your comments to consultation@scoperatings.com.

Scope will review and publish the content of written responses in accordance with regulatory requirements unless the respondent has specifically requested confidentiality.

Scope will publish the final version of the methodology thereafter.