KBRA Downgrades Four Ratings and Affirms All Other Outstanding Ratings for WFCM 2019-C50
2 May 2024 | New York
KBRA downgrades the ratings of four classes of certificates and affirms all other outstanding ratings of WFCM 2019-C50, an $824.6 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in estimated losses since last review, primarily associated with the InnVite Hospitality loan (2.3% of the pool balance).
As of the April 2024 remittance period, there are seven specially serviced assets (15.1%), including one REO asset (1.8%), two loans (4.9%) that are in foreclosure, and two other loans (3.3%) that are 90+ days delinquent. KBRA identified 10 K-LOCs (20.2%), including the specially serviced assets. The K-LOCs include:
Two of the top 10 loans (7.4%):
- Ohio Hotel Portfolio (4th largest, 4.0% of the pool balance)
- The Colonnade Office Complex (8th largest, 3.4%)
Four K-LOCs (7.6%) have estimated losses:
- 839 Broadway (2.7%, 17.7% estimated loss severity)
- InnVite Hospitality Portfolio (2.3%, 35.5%)
- 24 Commerce Street (1.8%, 57.9%, REO)
- Staybridge Suites Odessa Interstate Highway 20 (0.9%, 30.8%)
The remaining four K-LOCs do not have estimated losses and represent 5.1% of the pool balance.
Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 103.2%, compared to 104.6% at last review and 100.4% at securitization. The KDSC is 1.52x, compared to 1.57x at last review and 1.68x at securitization.
Details concerning the classes with rating changes are as follows:
- Class F to B (sf) from BB (sf)
- Class G to CCC (sf) from B (sf)
- Class X-F to B (sf) from BB (sf)
- Class X-G to CCC (sf) from B (sf)
To access rating and relevant documents, click here.
Click here to view the report.