KBRA Downgrades Eight Ratings Withdraws One Rating and Affirms All Other Ratings for MSBAM 2014-C19
27 Nov 2024 | New York
KBRA downgrades the ratings of eight classes of certificates, withdraws one rating, and affirms all other outstanding ratings. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in estimated losses from nine K-LOCs (39.0%) and the resulting loss adjusted C/E levels. The rating actions also consider the magnitude, recoverability and ongoing likelihood of continued interest shortfalls across the capital structure as the special servicer works to resolve the non-performing and maturing loans. Contemporaneously, KBRA withdraws its AAA (sf) rating on Class A-4 of MSBAM 2014-C19, a $412.4 million CMBS conduit transaction, following the reduction of the principal balance of the rated security to zero as reflected in the transaction’s October 2024 remittance report. There were no principal losses or interest shortfalls reported on the withdrawn rated security during its life.
As of the November 2024 remittance period, there are nine specially serviced assets (27.5%), of which five (14.0%) are REO, one (1.0%) is in foreclosure, and one (10.2%) is 90+ days delinquent. KBRA identified 13 K-LOCs (57.3%), including the specially serviced assets. These include:
Six top 10 loans (49.0%):
- Broward Financial Center (2nd largest, 13.8% of the pool balance)
- Ormsby Office Buildings (3rd largest, 12.8%, 12.8% estimated loss severity)
- PacStar Retail Portfolio (4th largest, 10.2%, 75.1%)
- Park at Caldera (5th largest, 7.6%, 45.1%)
- University Gardens (8th largest, 2.7%, 26.4%)
- The Villages of Mission Hills (10th largest, 1.9%)
Five other K-LOCs have an estimated loss:
- Courtyard by Marriott - Lake Norman (1.8%, 70.9%)
- Awalt Building (1.1%, 23.4%)
- Fairfield Inn - Columbia (1.0%, 63.1%)
- Rite Aid - Bellefonte, PA (1.0%, 39.4%)
- Comfort Inn Lake Charles (0.8%, 92.6%)
The remaining two K-LOCs represent 2.6% of the pool balance.
Details concerning the classes with rating changes are as follows:
- Class A-4 to WR from AAA (sf)
- Class PST to BBB- (sf) from A- (sf)
- Class C to BBB- (sf) from A- (sf)
- Class D to BB- (sf) from BBB- (sf)
- Class E to CCC (sf) from B- (sf)
- Class F to C (sf) from CC (sf)
- Class X-D to BB- (sf) from BBB- (sf)
- Class X-E to CCC (sf) from B- (sf)
- Class X-F to C (sf) from CC (sf)
To access ratings and relevant documents, click here.
Click here to view the report.