KBRA Downgrades Two Ratings to D (sf) for DBJPM 2020-C9 Following Realization of Principal Losses

KBRA downgrades the ratings of the certificates for classes G and X-G to D (sf) from CC (sf) for DBJPM 2020-C9, a $452.0 million CMBS conduit transaction, following realized losses incurred from the resolution of the Brass Professional Center specially serviced asset ($11.7 million trust balance at disposition) as reflected in the September 2026 remittance report.

The Brass Professional Center loan was collateralized by an 11-building, 575,771 sf Class-B suburban office complex located approximately 10 miles northwest of the San Antonio CBD in San Antonio, Texas. The loan was transferred to the special servicer in May 2023 due to payment default, and the property became REO in October 2023. The asset was liquidated in October 2026, with gross proceeds totaling $2.6 million and fees, advances, and expenses of $2.6 million, resulting in approximately $32,911 in net proceeds available for distribution to the trust. The liquidation resulted in a realized loss of $11.7 million, representing a 99.7% loss severity on the outstanding loan balance at disposition. The realized loss exceeded KBRA's expectations as reflected in the June 2026 surveillance report.

Following the liquidation of Brass Professional Center, the principal balance of the non-rated Class H certificates was reduced to zero, while the balance of Class G was reduced to $2.9 million, or 48.5% of its original certificate balance. The notional balances of Classes X-H and X-G are referenced to the principal balances of Classes H and G, respectively.

KBRA's other outstanding ratings for the transaction are unchanged at this time.

Rating Sensitivities

Future rating actions will be dependent upon the ongoing assessment of the timing and likelihood of ultimate payment of principal and accrued interest on the rated certificates. The assessment will consider the expected and actual losses on the remaining assets in the transaction, as well as the magnitude and extent of interest shortfalls, if any, on the certificates.

To access ratings and relevant documents, click here.

Related Publications

Methodologies