KBRA Affirms All Ratings for WFCM 2016-C32
12 Dec 2024 | New York
KBRA affirms all of its outstanding ratings for WFCM 2016-C32, a $770.9 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction, which has benefitted from pool deleveraging from loan payoffs, amortization, and defeasance and has exhibited overall stable pool performance compared to last review. However, the changes do not warrant rating adjustments at this time.
As of the November 2024 remittance period, there are four specially serviced assets (5.8% of the pool balance), including two (1.0%) which are REO. One additional loan (0.9%) transferred to the special servicer in December 2024. KBRA identified 11 K-LOCs (12.3%), including the specially serviced assets. The K-LOCs include two top 10 loans (6.4%):
- 10 South LaSalle Street (6th largest, 3.9% of the pool balance, 53.5% estimated loss severity)
- Cottonwood Shopping Center (8th largest, 2.5%)
Two other K-LOCs have estimated losses (1.0%):
- Wisconsin Retail Portfolio (0.6%, 79.8%, REO)
- Tops Plaza (0.4%, 6.4%, REO)
The remaining seven K-LOCs, representing 4.9% of the pool balance, do not have estimated losses.
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 86.2%, compared to 86.8% at last review and 96.0% at securitization. The KDSC is 2.19x, compared to 2.16x at last review and 2.36x at securitization.
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