KBRA Downgrades Two Ratings and Affirms All Other Outstanding Ratings for MSC 2019-H6
5 Jun 2024 | New York
KBRA downgrades the ratings of two classes of certificates and affirms all other outstanding ratings of MSC 2019-H6, a $659.9 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 from three K-LOCs (6.3% of the pool balance).
As of the May 2024 remittance report, there are three specially serviced assets (6.4%), including one loan (3.1%) that is in foreclosure and one loan (0.9%) that is 90+ days delinquent. KBRA has identified seven K-LOCs (12.4%), including the specially serviced assets. The K-LOCs include one of the top 10 loans:
- Columbia Corporate Center (9th largest, 3.1% of the pool, 35.0% estimated loss severity)
Two other K-LOCs (3.2%) have estimated losses:
- AC by Marriott San Jose (2.3%, 11.1% estimated loss severity)
- 856 Greene Avenue (0.9%, 22.2%)
The remaining four K-LOCs do not have estimated losses and represent 6.0% of the pool balance.
Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 91.6%, compared to 94.1% at last review and 93.4% at securitization. The KDSC is 1.92x, which is in line with last review and down from 1.96x at securitization.
Details concerning the classes with rating changes are as follows:
- Class H-RR to BB- (sf) from BB (sf)
- Class J-RR to B- (sf) from B (sf)
To access rating and relevant documents, click here.
Click here to view the report.