Press Release|CMBS

KBRA Downgrades Seven Ratings and Affirms All Other Ratings for CGCMT 2016-P4

30 May 2025   |   New York

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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:

K-LOCs Loss Given Default (000s) Loss Severity 3 Esplanade I OF $34,583 5.6% Y C N Specially Serviced 05/23/2023 $15,197 43.9% 4 401 South State Street OF $28,411 4.6% Y 90+ N REO 05/20/2020 $31,802 111.9% 8 Marriott Midwest Portfolio LO $27,500 4.4% Y PM Y Modification 05/20/2020 $7,273 26.4% 15 Highridge Crossing RT $15,517 2.5% N C N DSCR 04/03/2025 - - 26 Park Place OF $9,860 1.6% N C N Maturity 02/03/2025 - - 25 Westgate Shopping Center RT $9,470 1.5% Y C N Specially Serviced 02/05/2020 - - 27 Winchester Plaza RT $9,263 1.5% N C N Occupancy 02/07/2025 - - 28 600 Independence Parkway OF $8,993 1.5% N C N Maturity 09/09/2024 - - 40 Northpointe Plaza RT $4,481 0.7% N C N DSCR 04/30/2024 - - Total K-LOCs $148,077 23.9% $54,272 1. K-LOC Date is the date when the most recent K-LOC was initially determined. 2. Loss Given Default assumes a 100% probability of default (PD). KBRA may determine a lower PD when estimating losses to a transaction. KBRA Estimated 2 SS Loan Status Mod (Y/N) Primary K-LOC Reason K-LOC Date 1 Prosp. ID Loan Name Prop Type Current In-Trust Balance (000s) % of Deal Balance
Source: KBRA

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.

Click here to view the report.

Related Publication

Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1009676

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