KBRA Upgrades Three Ratings and Affirms All Other Ratings for FREMF 2016-K56
22 Mar 2024 | New York
KBRA upgrades the ratings of three classes of certificates and affirms all other outstanding ratings of FREMF 2016-K56, a $1.0 billion CMBS multi-borrower transaction. All loans were originated in conjunction with the Federal Home Loan Mortgage Corporation's (Freddie Mac) K-Deal program. The rating actions follow a surveillance review of the transaction, which has exhibited an improvement in pool performance since KBRA's last ratings change in August 2022. In addition, the rating actions reflect transaction deleveraging from loan defeasances, payoffs, and amortization.
As of the February 2024 remittance period, none of the loans are specially serviced or delinquent. However, KBRA identified one K-LOC (0.8% of the pool balance), which is not within the top 10 and does not have an estimated loss.
The transaction's WA KLTV is 81.4%, compared to 101.8% at KBRA's last ratings change and 112.9% at securitization. The KDSC is 1.90x, compared to 1.52x at KBRA's last ratings change and 1.44x at securitization.
Details concerning the classes with ratings changes are as follows:
- Class A-M to AAA (sf) from AA+ (sf)
- Class B to AA+ (sf) from AA- (sf)
- Class C to A+ (sf) from A (sf)
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