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KBRA Downgrades Seven Ratings, Affirms Six Ratings, and Withdraws Five Ratings for MSCI 2016-UBS9

13 Feb 2026   |   New York

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KBRA downgrades seven ratings and affirms all other ratings for MSCI 2016-UBS9, a $200.3 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in KBRA’s estimated losses from the transaction's five K-LOCs (81.3% of the pool balance) compared to KBRA's last ratings change in February 2025. The ratings also consider the likelihood of interest shortfalls continuing and affecting classes higher in the capital structure while the servicer resolves the transaction’s four (61.4%) specially serviced assets.

Contemporaneous to the affirmations and downgrades of the ratings of the 13 outstanding classes, KBRA subsequently withdraws the ratings of five classes of interest-only (IO) certificates in accordance with KBRA’s Methodology for Rating Interest-Only Certificates, as there are fewer than 10 loans remaining in the pool.

As of the January 2026 remittance period, there are seven assets remaining in the underlying mortgage pool. Four loans (61.4%) are with the special servicer, of which three (36.9%) are non-performing matured and one (15.0%) is current. Additionally, one loan (20.0%) is expected to transfer to the special servicer for failure to pay off at its scheduled February 2026 maturity. KBRA identified five assets as K-LOCs (81.3%), which are outlined below.

2100 Ross (24.4%, K-LOC, Specially Serviced)

  • 2100 Ross is collateralized by the borrower’s fee simple interest in an 843,728-sf, Class-A office building located in Dallas, Texas, within the Arts District of the CBD. The property was developed on a 1.4-acre site in 1982, renovated between 2012 and 2015. The 33-story development encompasses an entire city block and features a four-level, 474-space underground parking garage
  • KBRA maintains the loan’s K-LOC designation and KPO of Underperform based on its status with the special servicer due to declining collateral performance and occupancy concerns. According to the September 2025 rent roll, the property was 64.3% leased compared to 66.1% at last review and 85.7% at issuance. The decline in occupancy is primarily due to the former largest tenant, CBRE, Inc. (20.0% of base rent at KBRA's 2022 Review), vacating the property at their March 2022 lease expiration. In addition, there is significant upcoming tenant rollover with leases generating 21.4% and 17.1% of base rent expiring in 2026 and 2027, respectively.
  • The servicer-reported DSCs and occupancies are: 1.55x / 64.0% (June 2025 YTD); 1.61x / 63.0% (FY 2024) 0.94x / 63.0% (FY 2023); at issuance these were 1.36x and 86.0%. KBRA’s analysis resulted in an estimated loss of $235,676 (0.5% estimated loss severity) on the whole loan balance of $79.9 million. To determine the estimated loss, KBRA performed a stabilized analysis to determine KNCF. A KBRA value of $79.5 million was derived from stabilized KNCF of $7.6 million and a capitalization rate of 9.50%.

Princeton Pike Corporate Center (22.3%, K-LOC, Specially Serviced)

  • Princeton Pike Corporate Center is collateralized by an 809,458 sf, suburban office complex that is comprised of eight low-rise buildings located in Lawrence Township, New Jersey, approximately eight miles northeast of the Trenton CBD. The collateral consists of seven buildings and a 55.7% condominium interest in the eighth building. The property is subject to three separate condominium regimes.
  • KBRA maintains the loan’s K-LOC designation and KPO of Underperform based on its non-performing matured status with the special servicer. According to the September 2025 rent roll, the property was 42.6% leased compared to 44.8% at last review and 86.3% at issuance. There is additional near-term rollover risk as nine tenants (24.0% of base rents) are operating under MTM or leases expiring in 2026. As of the January 2026 remittance period, there was a total of $3.4 million of principal and interest advances and $64,000 of accrued advance interest.
  • The servicer-reported DSCs and occupancies are: 0.91x / 45.0% (FY 2024); 1.16x / 60.0% (FY 2023); at issuance these were 1.38x and 86.0%. KBRA's analysis resulted in an estimated loss given default of $83.3 million (64.5% estimated loss severity) on the whole loan balance of $129.0 million. The loss is based on a KBRA liquidation value of $82.9 million ($102 per sf). The value considers an income capitalization approach, using a stabilized KNCF of $7.1 million and a capitalization rate of 11.0%, and an adjustment for income lost during the stabilization period.

Twenty Ninth Street Retail (20%, K-LOC)

  • Twenty Ninth Street Retail is collateralized by the fee simple and leasehold interests in 704,713 sf of an 854,994 sf regional lifestyle center located in Boulder, Colorado, approximately 29 miles northwest of the Denver CBD. The development consists of 22 single- and two-story buildings with 718,542 sf of retail space and 136,452 sf of office space. Macy’s which owns its improvements and underlying land is not part of the subject loan’s collateral.
  • KBRA maintains the loan's K-LOC designation and KPO of Underperform based on declining collateral performance. According to the June 2025 rent roll, the property was 91.3% leased compared to 91.5% at last review and 99.0% at issuance. The current KNCF is 39.9% below KNCF at securitization driven by declining base rent and increased expenses, as reflected in the annualized FY 2024 OSAR. The servicer reported FY 2024 NCF of $10.1 million has declined 42.1% from the issuer's underwritten $17.4 million. The borrower has indicated the loan will not be able to pay off at its scheduled February 2026 maturity and is in process of transferring to the special servicer.
  • The servicer-reported DSCs and occupancies are: 1.66x / N/A (YTD September 2025); 1.60x / 95.0% (FY 2024); at issuance these were 2.79x and 99.0%. KBRA's analysis resulted in an estimated loss of $6.9 million (4.6% estimated loss severity) on the whole loan balance of $150.0 million. The loss is based on a KBRA liquidation value of $143.1 million ($171 per sf). The value considers a distressed non-stabilized disposition of the asset.

Grove City Premium Outlets (10%, K-LOC, Specially Serviced)

  • The loan is collateralized by a 531,212 sf outlet center located in Grove City, Pennsylvania, approximately 60 miles north of Pittsburgh. The loan sponsor is Simon Property Group.
  • KBRA maintains the loan's K-LOC designation and KPO of Underperform due to its status with the special servicer. The loan transferred to the special in August 2025, as the borrower indicated to the inability to refinance by the maturity date of December 2025. Occupancy was most recently reported at 72.7% in the March 2025 rent roll, down from expected occupancy of 99.0% at closing. Furthermore, leases representing 24.3% of base rent operate on a MTM basis, and leases representing an additional 27.9% of total base rent expire through YE 2026, which has likely complicated refinancing efforts.
  • The servicer-reported DSCs and occupancies are: 2.02x / 77.0% (YTD June 2025); 2.18x / 74.0% (FY 2024); at issuance these were 2.56x and 99.0%. KBRA’s analysis resulted in an estimated loss of $30.8 million (22.0% estimated loss severity) on the whole loan balance of $140.0 million. The loss is based on a KBRA liquidation value of $109.8 million ($207 per sf). The value is derived from a direct capitalization approach using a KNCF of $11.5 million and a capitalization rate of 10.50%.

Gulfport Premium Outlets (4.7%, K-LOC, Specially Serviced)

  • The loan is collateralized by a 300,238 sf outlet center located in Gulfport, Mississippi, approximately 71 miles southwest of Mobile, Alabama. The property is subject to a ground lease with the Board of Education of Harrison County that expires in 2035 and contains one, 25-year renewal option. The loan sponsor is Simon Property Group.
  • KBRA maintains the loan's K-LOC designation and KPO of Underperform due to its status with the special servicer. The loan transferred to the special in August 2025 because the borrower indicated it would be unable to refinance the loan by the December 2025 maturity date. The collateral was reported to be 87.0% leased as of July 2025 and leases representing 40.6% of base rent are scheduled to expire through YE 2026, inclusive of leases that are already operating on a MTM basis (13.5% of total base rent), which may complicate refinancing efforts.
  • The servicer-reported DSCs and occupancies are: 2.36x / 88.0% (YTD September 2025); 2.34x / 85.0% (FY 2024); at issuance these were 2.71x and 95.0%. KBRA’s analysis resulted in an estimated loss of $10.0 million (20.0% estimated loss severity) on the whole loan balance of $50.0 million. The loss is based on a KBRA liquidation value of $40.2 million ($134 per sf). The value is derived from a direct capitalization approach using a KNCF of $4.4 million and a capitalization rate of 11.00%.

Details concerning the classes with a ratings change are as follows:

  • Class D to B (sf) from BB (sf)
  • Class E to CCC (sf) from B (sf)
  • Class F to CC (sf) from B- (sf)
  • Class G to C (sf) from CCC (sf)
  • Class X-D to B (sf) from BB (sf)
  • Class X-E to CCC (sf) from B (sf)
  • Class X-FG to C (sf) from CCC (sf)

Details concerning the ratings affirmations are as follows:

  • Class A-4 at AA A (sf)
  • Class A-S at AAA (sf)
  • Class B at AA (sf)
  • Class C at A (sf)
  • Class X-A at AAA (sf)
  • Class X-B at AAA (sf)

Details concerning the withdrawn ratings are as follows:

  • Class X-A to WR (sf) from AAA (sf)
  • Class X-B to WR (sf) from AAA (sf)
  • Class X-D to WR (sf) from B (sf)
  • Class X-E to WR (sf) from CCC (sf)
  • Class X-FG to WR (sf) from C (sf)

Rating Sensitivities

Future rating actions will be dependent upon the ongoing assessment of the timing and likelihood of ultimate payment of principal and accrued interest on the rated certificates. The assessment will consider the expected and actual losses on the remaining assets in the transaction, as well as, the magnitude and extent of interest shortfalls, if any, on the certificates.

To access ratings and relevant documents, click here.

Related Publication

Methodologies

Disclosures

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: 1013425