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KBRA Downgrades Three Ratings of CD 2016-CD2 to D (sf) Following Realization of Principal Losses

9 Dec 2025   |   New York

Contacts

KBRA downgrades the ratings of the D, X-D, and V1-D certificates to D (sf) from C (sf) for CD 2016-CD2, a $774.9 million conduit transaction, following the reallocation of realized losses incurred from the resolution of the 229 West 43rd Street Retail Condo REO asset (originally 3rd largest, $75.0 million loan balance at issuance) as reflected in the November 2025 remittance report.

In November 2025, cumulative principal losses on the transaction's certificates totaled $77.0 million. After the updated reallocation of realized losses, Class E has been reduced to zero and the realized losses have resulted in the principal balance of Classes D and V1-D being reduced.

KBRA's other outstanding ratings are unchanged at this time.

Details concerning the classes with a rating change are as follows:

  • Class D to D (sf) from C (sf)
  • Class X-D to D (sf) from C (sf)
  • Class V1-D to D (sf) from C (sf)

Rating Sensitivities

Future rating actions will be dependent upon the ongoing assessment of the timing and likelihood of ultimate payment of principal and accrued interest on the rated certificates. The assessment will consider the expected and actual losses on the remaining assets in the transaction, as well as, the magnitude and extent of interest shortfalls, if any, on the certificates.

To access ratings and relevant documents, click here.

Related Publications

Methodologies

Disclosures

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: 1012537