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KBRA Downgrades Three Ratings and Affirms All Other Ratings for BBCMS 2019-C3

14 May 2026   |   New York

Contacts

KBRA downgrades the ratings of three classes of certificates and affirms all other outstanding ratings for BBCMS 2019-C3, an $877.9 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited a worsening in pool performance since securitization. The rating actions reflect KBRA's estimated losses for three K-LOCs (3.6% of the pool balance) and the resulting loss adjusted C/E levels.

As of the April 2026 remittance period, there are three specially serviced assets (6.6%), of which one (0.8%) is in foreclosure, one (2.4%) is 90+ days delinquent and one (3.4%) is matured non-performing. There is one additional loan that is 90+ days delinquent (1.0%) that is not with the special servicer as of the most recent remittance. KBRA identified 13 K-LOCs (24.6%), including the specially serviced and delinquent assets. Of the K-LOCs, three (3.6%) have estimated losses. The K-LOCs are depicted in the table below:

Loss Given Default (000s) Loss Severity 6 ATRIA Corporate Center OF $37,982 4.3% N C N DSCR 04/03/2025 - - 8A2 NEMA San Francisco MF $35,000 4.0% N C Y Modification 05/10/2023 - - 10A3 The Colonnade Office Complex OF $30,000 3.4% Y NPM N Specially Serviced 03/29/2023 - - 16 4201 Connecticut Avenue NW OF $21,000 2.4% Y 90+ N Specially Serviced 10/25/2022 $14,232 67.8% 17 California Center OF $18,906 2.2% N C N DSCR 02/25/2026 - - 21A3 The Block Northway RT $16,454 1.9% N C N Lease Rollover 02/09/2026 - - 19A1 Patuxent Crossing OF $15,965 1.8% N C N DSCR 12/11/2025 - - 33A4 Southern Motion Industrial Portfolio IN $9,194 1.0% N C N DSCR 11/03/2025 - - 34 Candlewood Suites Indianapolis Downtown Medical District LO $8,890 1.0% N 90+ Y Delinquent 09/04/2025 - - 38 Fairfield Inn & Suites Dunn LO $7,260 0.8% N C N DSCR 02/03/2026 - - 40 North Attleboro Shopping Center RT $6,891 0.8% Y FCL N Foreclosure 05/13/2024 $2,283 33.1% 45 Town Plaza Leesville RT $4,841 0.6% N C N DSCR 04/13/2020 - - 46 Best Western Plus Fairburn Atlanta Southwest LO $3,993 0.5% N C Y DSCR 05/13/2024 $1,526 38.2% Total K-LOCs $216,377 24.6% $18,041 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. 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 K-LOC Date 1
Source: KBRA

Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 106.9%, compared to 101.6% at last review and 98.6% at securitization. The KDSC is 1.69x, compared to 1.72x at last review and 1.80x at securitization.

Details concerning the classes with ratings changes are as follows:

  • Class F-RR to BB (sf) from BB+ (sf)
  • Class G-RR to B+ (sf) from BB- (sf)
  • Class H-RR to B- (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.

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