KBRA Downgrades Two Ratings and Affirms All Other Ratings for CGCMT 2016-P5
24 Jul 2026 | New York
KBRA downgrades the ratings of two classes of certificates and affirms all other outstanding ratings for CGCMT 2016-P5, a $389.9 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in estimated losses since KBRA's last ratings change in July 2025. The transaction, however, has benefited from deleveraging due to principal paydowns, particularly at the top of the capital structure.
As of the July 2026 remittance period, there are six specially serviced loans (41.1% of the pool balance), of which one (4.9%) is REO, one (4.9%) is in foreclosure, one (7.4%) is 90+ days delinquent, and one (2.9%) is matured non-performing. KBRA identified 12 K-LOCs (82.5%), including the specially serviced assets. Of the K-LOCs, ten (69.5%) have estimated losses. The K-LOCs are depicted in the table below:
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 102.0%, compared to 112.0% at KBRA's last ratings change in July 2025 and 98.4% at securitization. The WA KDSC is 1.28x, down from 1.80x at KBRA's last ratings change and 1.99x at issuance.
Details concerning the classes with rating changes are as follows:
- Class B to A (sf) from AA (sf)
- Class C to BB (sf) from BBB- (sf)
To access ratings and relevant documents, click here.
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