KBRA Withdraws One Rating and Affirms All Other Ratings for Benchmark 2019-B10
5 Apr 2024 | New York
KBRA affirms all of its outstanding ratings for Benchmark 2019-B10, a $993.6 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction, which has exhibited a worsening in pool performance since securitization due to the addition of specially serviced assets and K-LOCs. However, the magnitude of the changes does not warrant ratings adjustments at this time. In addition, KBRA withdraws its AAA (sf) rating on Class A-2 following the reduction of the principal balance of the rated security to zero as reflected in the transaction’s March 2024 remittance report. There were no principal losses or interest shortfalls reported on the withdrawn rated security during its life.
As of the March 2024 remittance report, there are four specially serviced assets (8.0% of the pool balance), which include one REO asset (0.8%), one loan in foreclosure (1.9%), and two delinquent loans (5.3%). KBRA identified 12 K-LOCs (30.2%), including the special serviced assets. These include two of the top 10 loans:
- 3 Park Avenue (2nd largest, 6.0% of the pool balance)
- Saint Louis Galleria (3rd largest, 6.0%)
Two K-LOCs has estimated losses:
- 166 Geary Street (1.9% of the pool balance, 42.3% estimated loss severity)
- 116 University Place (0.8%, 53.8%)
The remaining eight K-LOCs do not have estimated losses and represent 15.5% of the pool.
Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 107.8%, compared to 98.9% at last review and 95.9% at issuance. The KDSC is 1.57x, compared to 1.79x at last review and 1.79x at issuance.
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Click here to view the report.