KBRA Downgrades the Rating of Argentic Risk Retention Pass Through Certificates, MOA 2020-WC46 E
16 Jul 2026 | New York
KBRA downgrades its BBB- (sf) rating to BB (sf) for the Argentic Risk Retention Pass Through Certificates, MOA 2020-WC46 E, a $16.4 million pass through certificate. The rating is solely dependent on the rating of the underlying E-RR certificate within WFCM 2018-C46, a CMBS conduit securitization rated by KBRA. The ratings action follows a surveillance review of the transaction, which has exhibited an increase in KBRA's estimated losses from four K-LOCs (11.2% of the pool balance) since last KBRA's last ratings change in August 2021.
As of the June 2026 remittance period, there are three specially serviced assets (7.2%), two of which (5.4%) are in foreclosure and one (1.7%) of which is REO. KBRA identified seven K-LOCs (23.9%), including the specially serviced assets. Of the K-LOCs, four (12.9%) have estimated losses. Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 100.3%, compared to 114.1% at KBRA's last ratings change and 99.6% at securitization. The KDSC is 1.49x, compared to 1.43x at KBRA's last ratings change and 1.64x at securitization.
Rating Sensitivities
The factors that can lead to qualification or change of the rating include: 1) The rating of the pass through certificate is directly and solely dependent on the rating of its underlying collateral certificate, 2) The rating of the underlying collateral certificate is dependent on the performance of the CMBS conduit transaction that issued them, which is a function of the credit behavior of the underlying loans and performance of the properties that serve as loan collateral,and 3) The scope and interpretation of risk retention regulations is largely untested in any legal or regulatory proceedings. Adverse interpretations or actions by legal or regulatory authorities could result in qualification or withdrawal of ratings on the pass through certificate.
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