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KBRA Downgrades Two Ratings and Affirms All Other Ratings for MSC 2019-H7

10 Jul 2026   |   New York

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KBRA downgrades the ratings of two classes of certificates and affirms all other outstanding ratings for MSC 2019-H7, a $668.0 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited a worsening in pool performance since securitization, including an increase in the number of specially serviced loans and estimated losses since KBRA's last ratings change.

As of the June 2026 remittance report, there are three specially serviced assets (4.6% of the pool balance), two of which are in foreclosure (3.7%), and the other is REO (0.9%). KBRA identified eight K-LOCs (14.9%), including the specially serviced assets. Of the K-LOCs, six (11.8%) have an estimated loss. The K-LOCs are depicted in the table below:

Loss Given Default (000s) Loss Severity 8 North Carolina Technical Park IN $22,369 3.4% N C N Occupancy 09/12/2024 $590 2.6% 17 3 Independence Way OF $13,192 2.0% Y FCL N Foreclosure 09/13/2023 $8,480 64.3% 18 Legacy Tower OF $13,128 2.0% N C N DSCR 08/15/2023 $7,360 56.1% 22 Eleven Seventeen Perimeter OF $12,000 1.8% N C N DSCR 07/21/2023 $5,063 42.2% 21 1458 Ocean Dr / 1437 Collins Ave RT $11,729 1.8% Y FCL Y Foreclosure 05/13/2020 - - 24 Niles Retail Center RT $11,000 1.7% N C N DSCR 07/22/2025 $576 5.2% 29 AC by Marriott San Jose LO $10,000 1.5% N C Y DSCR 10/05/2020 - - 42 Greenwood Heights IN $5,978 0.9% Y REO N REO $3,339 55.9% Total K-LOCs $99,396 14.9% $25,408 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. K-LOC Date 1 KBRA Estimated 2 K-LOCs Prosp. ID Loan Name Prop Type Current In- Trust Balance (000s) % of Deal Balance SS Loan Status Mod (Y/N) Primary K- LOC Reason
Source: KBRA

Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 90.8%, compared to 89.1% at KBRA's last ratings change and 98.3% at securitization. The KDSC is 1.94x, compared to 1.98x at KBRA's last ratings change and 1.88x at securitization.

Details concerning the classes with rating changes are as follows:

  • Class F-RR to B- (sf) from BB- (sf)
  • Class G-RR to CCC (sf) from B (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: 1015940