KBRA Downgrades Seven Ratings and Affirms All Other Ratings for CGCMT 2016-P6
6 Nov 2024 | New York
KBRA downgrades the ratings of seven classes of certificates and affirms all other outstanding ratings of CGCMT 2016-P6, a $689.5 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in estimated losses since last review when a number of ratings were downgraded.
As of the October 2024 remittance period, there are eight specially serviced assets (14.3% of the pool balance). KBRA identified 15 loans (40.2%) as K-LOCs, including the specially serviced assets. These include:
Four of the top 10 loans (28.4%):
- 8 Times Square & 1460 Broadway (largest, 10.9% of the pool, 13.2% estimated loss severity)
- 681 Fifth Avenue (2nd largest, 8.3%, 61.1%)
- Hyatt Regency Jersey City (6th largest, 5.1%)
- 925 La Brea Avenue (7th largest, 4.0%, 38.9%)
The remaining 11 K-LOCs do not have estimated losses and represent 16.9% of the pool balance.
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 97.4%, compared to 105.8% at last review and 102.0% at issuance. The KDSC is 1.71x, compared to 1.69x at last review and 1.82x at securitization.
Details concerning the classes with rating changes are as follows:
- Class B to AA- (sf) from AA+ (sf)
- Class C to BBB (sf) from A+ (sf)
- Class D to B (sf) from BBB- (sf)
- Class E to CCC (sf) from B- (sf)
- Class F to CC (sf) from CCC (sf)
- Class G to C (sf) from CC (sf)
- Class X-D to B (sf) from BBB- (sf)
To access ratings and relevant documents, click here.
Click here to view the report.