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KBRA Downgrades Three Ratings and Affirms All Other Ratings for WFCM 2022-C62

10 Apr 2026   |   New York

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KBRA downgrades the ratings of three classes of certificates and affirms all other outstanding ratings for WFCM 2022-C62, a $521.6 million CMBS conduit transaction. The ratings actions follow a surveillance review of the transaction, which has exhibited a worsening in pool performance since securitization. The ratings actions reflect increases in KBRA’s estimated losses from K-LOCs and the resulting loss adjusted C/E levels.

As of the March 2026 remittance period, there are five (14.2% of the pool balance) specially serviced assets, including three (8.3%) that are REO, one (1.9%) in foreclosure, and one (4.0%) that is 90+ days delinquent. KBRA identified nine K-LOCs (23.7%), including the specially serviced assets. Of the K-LOCs, six (18.0%) have estimated losses. The K-LOCS are depicted in the table below:

Loss Given Default (000s) Loss Severity 3 Midtown Central Square OF $30,650 5.9% Y 90+ Y REO 10/07/2024 $5,626 18.4% 5 Long Lake Crossing OF $21,000 4.0% Y 90+ N Specially Serviced 02/12/2025 $9,853 46.9% 7 530 Bush Street OF $19,500 3.7% N C N Occupancy 03/09/2023 $5,343 27.4% 14 Oakridge Apartments MF $13,750 2.6% N C N Prior SS 08/07/2023 - - 17 The Hallmark OF $11,235 2.2% N C N Lease Rollover 03/26/2024 - - 21 3820 Broadway MU $10,000 1.9% Y 90+ N Foreclosure 03/22/2023 $2,048 20.5% 23 3450 Broadway MU $8,950 1.7% Y 90+ N REO 03/22/2023 $3,038 33.9% 35 375 Sand Lane MU $4,750 0.9% N C N Recent Delinquency 10/02/2025 - - 41 1835 Amsterdam Avenue MU $3,570 0.7% Y 90+ N REO 08/08/2023 $1,628 45.6% Total K-LOCs $123,405 23.7% $27,536 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 103.0%, compared to 107.0% at last review and 100.0% at securitization. The WA KDSC is 1.89x, compared to 1.88x at last review and 2.00x at securitization.

Details concerning the classes with ratings changes are as follows:

  • Class D to BBB- (sf) from BBB (sf)
  • Class E to BB (sf) from BBB- (sf)
  • Class X-D to BB (sf) from BBB- (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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