KBRA Upgrades Three Ratings and Affirms All Other Ratings for FREMF 2019-K87
17 Jan 2025 | New York
KBRA upgrades the ratings of three classes of certificates and affirms all other outstanding ratings of FREMF 2019-K87, a $1.3 billion CMBS multi-borrower transaction. All loans were originated in conjunction with the Federal Home Loan Mortgage Corporation’s (Freddie Mac) K-Deal program. The ratings actions follow a surveillance review of the transaction, which has exhibited an improvement in pool performance since securitization. In addition, the ratings actions reflect transaction deleveraging from loan defeasances and amortization.
As of the December 2024 remittance period, there is one specially serviced loan, Springbrook Apartments (0.2% of the pool balance), which is 90+ days delinquent. Four loans (4.2%) have been identified as K-LOCs. This includes two with estimated losses:
- Wilshire Apartment Homes (1.1% of the pool balance, 5.1% estimated loss severity)
- Springbrook Apartments (0.2%, 18.2%)
Excluding K-LOCs with estimated losses, the transaction's WA KLTV is 100.1%, compared to 103.9% at last review and 110.7% at securitization. The KDSC is 1.61x, compared to 1.55x at last review and 1.44x at securitization.
Details concerning the classes with ratings changes are as follows:
- Class A-M to AA+ (sf) from AA (sf)
- Class B to A (sf) from A- (sf)
- Class C to BBB+ (sf) from BBB (sf)
To access ratings and relevant documents, click here.
Click here to view the report.