Tuesday 28 July 2026 4:43 pm

KBRA Releases Research – KBRA-Rated European CMBS Exposure to Wildfires in Spain and France

KBRA releases research assessing the potential exposure of KBRA-rated European commercial mortgage-backed securities (CMBS) transactions to the ongoing wildfires in Spain and France. KBRA has not identified any collateral properties within active wildfire perimeters or mandatory evacuation zones, and no physical damage or operational disruption has been identified. The following KBRA-rated CMBS transactions have collateral in Spain or France:

Idun (European Loan Conduit No. 42) S.a r.l. exhibits the closest proximity to the current wildfire activity through three logistics assets in Torija and Fontanar, Guadalajara Province. The properties are located approximately 43-56 miles from the active wildfire area and represent 36.4% of the allocated loan amount (ALA).
Taurus 2021-2 SP DAC includes six office properties in Madrid, representing 83.1% of the transaction’s ALA. The properties are located approximately 50-70 miles from the active wildfire in the Sierra Norte de Guadalajara.
River Green Finance 202 DAC is secured by a single office property in Bezons, Ile-de-France, representing 100% of the transaction’s ALA. The property is located well outside the active wildfire and evacuation areas in southwestern France.

For securitised loans, fire damage—including wildfire damage—is generally an insured peril. European CMBS transactions typically require borrowers to maintain property insurance covering the collateral against customary risks, together with business interruption or loss-of-rent insurance. However, wildfire losses may be subject to policy-specific deductibles, exclusions, or coverage limits.

KBRA will continue to monitor the status of the wildfires as part of its ongoing surveillance process.

Click here to view the report.

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KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions.

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