KBRA Downgrades Six Ratings, Withdraws One Rating, and Affirms All Other Ratings for COMM 2019-GC44
6 Dec 2024 | New York
KBRA downgrades the ratings of six classes of certificates, withdraws the rating of one class and affirms all other outstanding ratings for COMM 2019-GC44, a $968.4 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in KBRA's estimated losses from K-LOCs, including two (8.9% of the pool balance) of the top 10 loans. The rating withdrawal on Class A-1 follows the reduction of its principal balance to zero according to the November 2024 remittance report.
As of the November 2024 remittance period, there are three specially serviced loans (12.5%), one of which (5.2%) is matured non-performing.
KBRA identified seven loans (25.7%) as K-LOCs, two of which (8.9%) have estimated losses. This includes:
Five top 10 loans (22.7%):
- 180 Water (2nd largest, 6.5%)
- 225 Bush (5th largest, 5.2%, 25.0% estimated loss severity)
- 55 Green Street (8th largest, 3.8%, 51.3%)
- The Essex Site 2 (9th largest, 3.6%)
- Elston Retail Collection (10th largest, 3.6%)
The remaining two K-LOCs represent 3.0% of the pool and do not have estimated losses.
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 92.2%, compared to 96.4% at last review and 96.9% at securitization. The KDSC is 2.43x, compared to 2.37x at last review and 2.39x at securitization.
Details concerning the ratings changes are as follows:
- Class D to BBB- (sf) from BBB+ (sf)
- Class E to BB- (sf) from BBB- (sf)
- Class F to B- (sf) from BB- (sf)
- Class G-RR to CCC (sf) from B- (sf)
- Class X-D to BB- (sf) from BBB- (sf)
- Class X-F to B- (sf) from BB- (sf)
To access ratings and relevant documents, click here.
Click here to view the report.