KBRA Downgrades Seven Ratings and Affirms All Other Ratings for CGCMT 2016-P4
30 May 2025 | New York
KBRA downgrades the ratings of seven classes and affirms all other outstanding ratings for CGCMT 2016-P4, a $619.4 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in KBRA's estimated losses since last review. Additionally, the transaction has exhibited an increase in realized losses since last review, attributed to the reimbursement of non-recoverable servicer advances for the REO 401South State Street asset (4th largest, 4.5% of the pool), which remains in the pool and accounts for the transaction’s largest estimated loss.
As of the May 2025 remittance period, there are four specially serviced assets (16.1%), one (4.6%) of which is REO. KBRA identified nine K-LOCs (23.9%), including the specially serviced assets. Of the K-LOCs, three (14.6%) 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 92.1%, which compares to 99.1% at last ratings change in June 2023 and 102.8% at securitization. The WA KDSC is 1.62x, which compares to 1.63x at last ratings change and 1.61x at securitization.
Details concerning the classes with rating changes are as follows:
- Class B to AA- (sf) from AA (sf)
- Class C to BBB- (sf) from A (sf)
- Class D to B- (sf) from BB (sf)
- Class E to CC (sf) from B- (sf)
- Class F to C (sf) from CCC (sf)
- Class G to C (sf) from CC (sf)
- Class X-C to B- (sf) from BB (sf)
To access ratings and relevant documents, click here.
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