Press Release|CMBS
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KBRA Downgrades All Ratings for JPMCC 2020-NNN

14 Aug 2026   |   New York

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KBRA downgrades all ratings for JPMCC 2020-NNN, a CMBS single-borrower transaction. The rating actions follow a surveillance review of the transaction and are driven by a meaningful increase in KLTV, concentrated exposure to the weak office sector, and the loan’s foreclosure status with the special servicer due to its failure to pay off at maturity in January 2025. Conditions for refinancing office loans are unfavorable and are made more difficult for the sponsor, Stonemont Financial Group, by the lease expirations in 2027 and 2028 of tenants that generate 68.8% of base rent. In addition, the downgrades reflect the likelihood that interest shortfalls, which are currently impacting Classes D-FX and lower and H-FL and lower, will continue to reach higher in the capital structure as the special servicer works to resolve the loan.

Since closing, 26 collateral properties have been released, decreasing the number to 40 from 66, and reducing the outstanding trust balance to $514.7 million and the whole loan balance to $664.7 million as of August 2026. The decrease in the trust balance was due to a paydown of the floating-rate loan component. As of the July 2026 remittance, the trust loan carries an ARA of $340.3 million and a cumulative ASER of $1.4 million. Cumulative P&I advances total $2.1 million.

At securitization, the transaction was secured by a $775.0 million portion of a $925.0 million non-recourse, first-lien mortgage loan consisting of fixed-rate ($647.6 million) and floating-rate ($277.5 million) components. The fixed-rate loan was split into a senior loan component totaling $296.3 million and a subordinate component totaling $351.3 million. The collateral for this transaction includes $146.3 million of the senior fixed-rate component, the entire subordinate fixed-rate component, and the entire floating-rate component, which has been paid down significantly since closing. The remaining $150.0 million portion of the senior fixed-rate loan is not collateral for this trust.

The loan is secured by the borrowers’ fee simple interest in 40 single-tenant properties (based on the January 2026 rent roll). The portfolio has nearly 3.9 million sf of office (90.7% of ALA) and retail (9.3%) space in 13 states, with concentrations in Illinois (23 properties, 34.1% of collateral sf), New Jersey (two, 12.9%), and Virginia (two, 11.6%).

KBRA analyzed the cash flow for the properties utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $31.3 million and a KBRA value of $274.2 million ($71 per sf). A November 2025 appraisal valued the portfolio at $340.1 million ($88 per sf), down from $398.1 million ($103 per sf) in February 2025 and $835.2 million ($217 per sf) at issuance. The resulting in-trust KLTV is 242.4%, up from 194.8% at last review and 125.7% at securitization. KBRA maintains the loan’s K-LOC status and its KPO of Underperform.

Details concerning the classes with rating changes are as follows:

  • Class A-FX to BBB (sf) from AAA (sf)
  • Class B-FX to BB (sf) from A (sf)
  • Class C-FX to B (sf) from BBB (sf)
  • Class D-FX to CCC (sf) from BB (sf)
  • Class E-FX to CC (sf) from B (sf)
  • Class F-FX to C (sf) from CCC (sf)
  • Class G-FX to C (sf) from CC (sf)
  • Class XA-FX to BBB (sf) from AAA (sf)
  • Class XB-FX to BBB (sf) from AAA (sf)

The press release has been updated since its initial publication date on August 14, 2026 to correct a typographical error related to Class XB-FX, which was written as XB-FC.

To access ratings and relevant documents, click here.

Click here to view the report.

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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.

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