KBRA Downgrades Seven Ratings and Affirms All Other Ratings for WFCM 2016-BNK1
2 Aug 2024 | New York
KBRA downgrades the ratings of seven classes of certificates and affirms all other outstanding ratings of WFCM 2016-BNK1, a $797.1 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in estimated losses since KBRA's last ratings change in August 2023. The estimated losses are from four K-LOCs (20.8% of the pool balance), all of which are among the top ten loans.
As of the July 2024 remittance period, there is one specially serviced asset (7.2%) which is REO. KBRA identified eight K-LOCs (30.2%), four of which (20.8%) have estimated losses. The K-LOCs include:
Five of the top 10 loans (24.8%)
- One Stamford Forum (3rd largest, REO, 7.2%, 66.4% estimated loss severity)
- Pinnacle II (5th largest, 5.0%, 43.6%)
- Brewers Hill (6th largest, 4.6%, 23.0%)
- 633 Third Avenue - Retail Condo (8th largest, 4.0%, 14.1%)
- Simon Premium Outlets (9th largest, 4.0%)
The remaining three loans do not have estimated losses and represent 5.4% of the pool balance.
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 82.1%, compared to 85.6% at KBRA's last ratings change and 91.7% at securitization. The KDSC is 2.16x, compared to 2.19x at KBRA's last ratings change and 2.13x securitization.
Details concerning the ratings changes are as follows:
- Class C to BBB- (sf) from A- (sf)
- Class D to CCC (sf) from BB (sf)
- Class E to CC (sf) from B- (sf)
- Class F to C (sf) from CCC (sf)
- Class X-D to CCC (sf) from BB (sf)
- Class X-E to CC (sf) from B- (sf)
- Class X-F to C (sf) from CCC (sf)
To access rating and relevant documents, click here.
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