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KBRA Downgrades Seven Ratings and Affirms All Other Ratings for CD 2016-CD2

7 Nov 2025   |   New York

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KBRA downgrades the ratings of seven classes of certificates and affirms all other outstanding ratings of CD 2016-CD2, a $775.4 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited a worsening in pool performance since KBRA's last ratings change in November 2024. The rating actions also reflect KBRA's estimated losses for six K-LOCs (40.0% of the pool balance), five of which (39.2%) are within the top 10 loans, and the resulting loss adjusted C/E levels.

As of the October 2025 remittance period, there are two specially serviced assets (5.9%), both of which are also 90+ days delinquent. KBRA identified eight K-LOCs (46.9%), including the specially serviced assets. Of the K-LOCs, six (40.0%) have estimated losses. The K-LOCs are depicted in the table below.

K-LOCs Loss Given Default (000s) Loss Severity 1 8 Times Square & 1460 Broadway MU 100,000 12.9% N C N Tenant Issues 09/07/2023 $36,486 36.5% 4 Prudential Plaza OF 69,677 9.0% N C Y Modification 06/23/2023 $7,472 10.7% 7 60 Madison Avenue OF 55,000 7.1% N C N Occupancy 03/07/2025 $10,160 18.5% 12 667 Madison Avenue OF 40,000 5.2% N C N Occupancy 01/02/2024 $10,885 27.2% 10 Park Square Portland OF 39,141 5.0% Y 90+ N Specially Serviced 08/16/2023 $27,567 70.4% 11 80 Park Plaza OF 37,138 4.8% N C N Occupancy 04/25/2024 - - 16 Mills Fleet Farm RT 16,652 2.1% N C N Recent Delinquency 09/29/2025 - - 27 55 East 59th Street (Office Condo) OF 6,393 0.8% Y 90+ N Delinquent 12/29/2020 $2,014 31.5% Total K-LOCs $364,000 46.9% $94,584 1. K-LOC Date is the date when the most recent K-LOC was initially determined. 2. Loss Given Default assumes a 100% probability of default (PD). KBRA may determine a lower PD when estimating losses to a transaction. SS Prosp. ID Loan Name Prop Type Current In-Trust Balance (000s) % of Deal Balance Loan Status Mod (Y/N) Primary K-LOC Reason K-LOC Date 1 KBRA Estimated 2
Source: KBRA

Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 84.5%, which compares to 96.5% at KBRA's last ratings change and 95.9% at securitization. The KDSC is 1.74x, which compares to 1.65x at KBRA's last ratings change and 2.05x at issuance.

Details concerning the classes with rating changes are as follows:

  • Class B to BB (sf) from A- (sf)
  • Class C to CCC (sf) from BB- (sf)
  • Class D to C (sf) from CC (sf)
  • Class V1B to BB (sf) from A- (sf)
  • Class V1C to CCC (sf) from BB- (sf)
  • Class V1D to C (sf) from CC (sf)
  • Class X-D to C (sf) from CC (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.

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