KBRA Downgrades Eight Ratings and Affirms All Other Ratings for Benchmark 2019-B14

KBRA downgrades the ratings of eight classes and affirms all other outstanding ratings for Benchmark 2019-B14, a $1.3 billion CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in KBRA's estimated losses on six of the K-LOCs (18.7% of the pool balance). However, the top of the transaction’s capital structure has benefitted from deleveraging from loan payoffs, amortization, and defeasance. The downgraded classes include four of the rake certificates related to the 225 Bush companion loan, as a result of declining financial performance of the underlying asset.

As of the October 2024 remittance report, there are three specially serviced assets (6.0% of the pool balance), two of which (5.6%) are in foreclosure while one (0.4%) is 90+ days delinquent. KBRA identified 12 K-LOCs (35.0%), including the specially serviced assets. These include:

Four top 10 loans (18.5%):

Four additional K-LOCs have estimated losses (8.5%):

The remaining four K-LOCs do not have estimated losses and represents 8.0% of the pool balance.

Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 105.8%, compared to 114.1% at last review and 101.5% at issuance. The WA KDSC is 1.96x, which is unchanged from last review and compares to 2.13x at issuance.

Details concerning the classes with rating changes are as follows:

To access ratings and relevant documents, click here.

Click here to view the report.

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