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KBRA Downgrades Eight Ratings and Affirms All Other Ratings for BBCMS 2019-C4

7 Aug 2026   |   New York

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KBRA downgrades the ratings of eight classes of certificates and affirms all other outstanding ratings for BBCMS 2019-C4, an $830.4 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction. The downgrades are based on an increase in KBRA's estimated losses and the resulting loss-adjusted C/E levels. If realized, KBRA's estimated losses would impact classes E and below. The increase in estimated losses is attributable to the 188 Spear Street ($60.0 million, 7.2% of the pool balance) and Meidinger Tower ($18.1 million, 2.2%) loans.

As of the July 2026 remittance period, there are four specially serviced assets (10.9%), of which two are REO (1.5%). KBRA identified 13 K-LOCs (19.9%), including the specially serviced assets. Of the K-LOCs, five (12.5%) have estimated losses. The K-LOCs are depicted in the table below.

Loss Given Default (000s) Loss Severity 2 188 Spear Street OF $60,000 7.2% Y C N Specially Serviced 04/26/2023 $33,840 56.4% 12 Meidinger Tower OF $18,081 2.2% Y 90+ N Specially Serviced 02/23/2023 $17,759 98.2% 15 New Orleans MOB Portfolio OF $16,011 1.9% N C Y Prior SS 06/02/2020 - - 22 48 Saint Nicholas Place MF $13,850 1.7% N C N DSCR 07/09/2025 $3,403 24.6% 20 Black Canyon Tower OF $13,398 1.6% N C N Occupancy 12/20/2022 - - 38 Arapahoe Industrial Park IN $8,540 1.0% N C N Occupancy 03/28/2023 - - 44 At Home Store - Palm Beach Gardens RT $7,592 0.9% N C N DSCR 04/25/2024 - - 45 Hampton Inn El Reno LO $6,080 0.7% Y REO N REO 04/24/2020 $3,688 60.7% 46 Holiday Inn Express & Suites El Reno LO $6,003 0.7% Y REO N REO 04/24/2020 $4,394 73.2% 52 Greenwich Inn - San Francisco LO $5,363 0.6% N 30+ Y Delinquent 11/12/2024 - - 56 Krea Portfolio RT $4,528 0.5% N C N Occupancy 01/15/2025 - - 63 Jackson Retail Portfolio RT $3,286 0.4% N C N Lease Rollover 04/16/2020 - - 68 205-207 East Washington Street MU $2,716 0.3% N C N Lease Rollover 12/27/2023 - - Total K-LOCs $165,448 19.9% $63,084 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. KBRA Estimated 2 K-LOCs Prosp. ID Loan Name Prop Type Current In- Trust Balance (000s) % of Deal Balance SS Loan Status Mod (Y/N) Primary K-LOC Reason K-LOC Date 1
Source: KBRA

Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 90.9%, compared to 95.6% at last ratings change in August 2024 and 96.8% at securitization. The KDSC is 2.03x, compared to 2.01x at last ratings change and 1.98x at securitization.

Details concerning the classes with rating changes are as follows:

  • Class C to BBB- (sf) from A- (sf)
  • Class D to BB- (sf) from BBB (sf)
  • Class E to B- (sf) from BB (sf)
  • Class F to CCC (sf) from B (sf)
  • Class G to CC (sf) from CCC (sf)
  • Class X-D to B- (sf) from BB (sf)
  • Class X-F to CCC (sf) from B (sf)
  • Class X-G 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.

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