KBRA Downgrades Seven Ratings and Affirms All Other Outstanding Ratings for MSCI 2016-UBS9
14 Feb 2025 | New York
KBRA downgrades the ratings of seven classes of certificates and affirms all of its other outstanding ratings for MSCI 2016-UBS9, a $528.1 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction. The downgrades are based primarily on an increase in KBRA's estimated losses for four K-LOCs (24.9% of the pool balance) and the resulting loss adjusted C/E levels. The rating actions also consider the transaction deleveraging from loan payoffs, amortization and defeasance.
As of the January 2025 remittance period, there is one specially serviced loan (8.5%), which is 60+ days delinquent. KBRA has identified six loans (35.4%) as K-LOCs, of which four loans (24.9%) have estimated losses. These include four of the top 10 loans (32.6%):
- 525 Seventh Avenue (largest, 10.9% of the pool balance, 14.3% loss severity)
- 2100 Ross (2nd largest, 9.5%)
- Princeton Pike Corporate Center (4th largest, 8.5%, 36.8%)
- Grove City Premium Outlets (7th largest, 3.8%, 17.4%)
One other K-LOC has an estimated loss:
- Gulfport Premium Outlets (1.8%, 11.6%)
The remaining K-LOC (1.0%) does not have an estimated loss.
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 92.0% compared to 98.4% at last review and 94.3% at securitization. The KDSC is 1.61x compared to 1.63x at last review and 1.83x at securitization.
Details concerning the classes with rating changes are as follows:
- Class D to BB (sf) from BBB- (sf)
- Class E to B (sf) from BB- (sf)
- Class F to B- (sf) from B+ (sf)
- Class G to CCC (sf) from B- (sf)
- Class X-D to BB (sf) from BBB- (sf)
- Class X-E to B (sf) from BB- (sf)
- Class X-FG to CCC (sf) from B- (sf)
To access ratings and relevant documents, click here.
Click here to view the report.