Press Release|CMBS
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KBRA Downgrades Five Ratings and Affirms One Rating for MSBAM 2012-CKSV

5 Sep 2025   |   New York

Contacts

KBRA downgrades five ratings and affirms the remaining outstanding rating for MSBAM 2012-CKSV, a CMBS large loan transaction. The downgrades reflect the decline in KNCF and KBRA value for each property, each sponsor’s inability to refinance the loans at maturity, the uncertainty surrounding the final resolution of the loans, which are both in special servicing, and the ongoing operational challenges facing many mid-tier regional shopping malls. KBRA also considered the potential for interest shortfalls while the special servicer works to resolve the Sunvalley loan, as well as principal losses and recoveries from the collateral property.

The transaction collateral consists of two non-recourse, first lien mortgage loans secured by the fee simple interests in 631,537 sf of Clackamas Town Center (“Clackamas”), a 1.4 million sf super-regional mall located in Happy Valley, Oregon and 1.2 million sf of Sunvalley Shopping Center (“Sunvalley”), a 1.4 sf super-regional mall located in Concord, California. The Clackamas loan has an outstanding balance of $186.8 million and the Sunvalley loan has an outstanding balance of $134.3 million, resulting in a combined outstanding principal balance of $321.2 million. The loans are not cross-collateralized or cross-defaulted. The sponsors for the Clackamas Town Center loan are Brookfield Property and Teachers’ Retirement Systems of Illinois. The sponsor for the Sunvalley loan is Simon Property Group, LP. Both loans matured in 2022 and were granted 24-month extensions through October and September 2024, respectively. The Sunvalley loan had one additional extension option to September 1, 2025. There are no additional extension options available. The rated final distribution date is in October 2030.

The review utilized information from the trustee and servicer to determine KNCF. For Clackamas, the analysis produced a KNCF of $19.2 million, resulting in a KBRA value of $167.1 million ($265 per sf) and a whole-loan KLTV of 111.8%. Based on KBRA’s value of Clackamas, an implied principal loss, if any, would be minimal. For Sunvalley, the analysis produced a KNCF of $9.2 million, resulting in a KBRA value of $65.9 million ($109 per sf) and a KLTV of 203.8%. Based on KBRA’s liquidation value of Sunvalley, there is an implied principal loss of $71.5 million to the trust.

KBRA maintains the loans’ K-LOC statuses and KPOs of Underperform because of both sponsors’ failure to pay off the debt at the original maturity date and the decline in the value of both malls since securitization.

Details concerning the classes with rating changes are as follows:

  • Class A-2 to BBB- (sf) from A (sf)
  • Class X-A to BBB- (sf) from A (sf)
  • Class X-B to BBB- (sf) from A (sf)
  • Class B to CCC (sf) from B (sf)
  • Class C to CC (sf) from CCC (sf)

To access ratings and relevant documents, click here.

Click here to view the report.

Related Publication

Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1011132