KBRA Upgrades Three Ratings and Affirms All Other Ratings for FREMF 2020-K737
18 Dec 2024 | New York
KBRA upgrades the ratings of three classes of certificates and affirms all other outstanding ratings of FREMF 2020-K737, a $1.3 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 closing. In addition, the rating actions reflect transaction deleveraging from loan defeasances, payoffs, and amortization.
As of the November 2024 remittance period, there are no specially serviced loans, however, one loan (0.2% of the pool balance) failed to payoff at its recent maturity date. Three loans (3.8%) have been identified as K-LOCs. This includes one with an estimated loss:
- Bolero Flats (2.7% of the pool, 14.8% estimated loss severity)
Excluding the K-LOC with an estimated loss, the transaction’s WA KLTV is 112.4%, compared to 116.0% at last review and 122.3% at securitization. The KDSC is 1.58x, compared to 1.61x at last review and 1.51x at securitization.
Details concerning the classes with ratings changes are as follows:
- Class A-M to AA (sf) from A+ (sf)
- Class B to A (sf) from BBB+ (sf)
- Class C to BBB+ (sf) from BBB (sf)
To access ratings and relevant documents, click here.
Click here to view the report.