Press Release|CMBS
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KBRA Downgrades All Ratings for NCMS 2022-JERI

10 Apr 2026   |   New York

Contacts

KBRA downgrades all outstanding ratings of NCMS 2022-JERI, a CMBS SASB transaction. The rating actions follow a surveillance review of the transaction and are driven by a deterioration in collateral performance and property value caused by declines in property occupancy and net cash flow. KBRA also considered the loan’s status with the special servicer, outstanding servicer advances of $6.7 million, the appraisal reduction amount of $5.5 million, and cumulative interest shortfalls of $367,871 that are affecting the non-rated class G certificates. Interest shortfalls have the potential to affect classes higher in the capital structure with ongoing special servicing fees and the cumulative ASER amount as the special servicer works to resolve the loan.

The transaction collateral is a non-recourse, first loan mortgage loan with a principal balance of $149.2 million ($224 per sf). The floating-rate loan was structured with an initial two-year term through January 2024 with three one-year extension options and requires monthly interest-only payments based on one-month SOFR plus a spread of 4.0003%. The loan transferred to the special servicer in January 2024 for maturity default after the borrower did not purchase a replacement interest cap agreement that was required to exercise the loan’s first extension option. A foreclosure complaint and litigation against the loan guarantor were filed in February. Trigild was installed as receiver in the same month. A final judgment of foreclosure and sale was entered by the court in February 2026, and an associated court order is pending. A title transfer of the collateral property could occur in the near term. The loan is secured by the borrower’s fee simple interest in two office buildings totaling 666,228 sf located on Long Island in Jericho, New York. The non-recourse guarantor is Menachem Meisner.

KBRA analyzed the cash flow for the property utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $8.2 million and a KBRA value of $85.9 million ($129 per sf). The resulting in-trust KLTV increased to 173.8% from 156.9% at KBRA’s last ratings change in April 2025 and from 126.6% at securitization. KBRA maintains the loan’s K-LOC designation.

Details concerning the classes with ratings changes are as follows:

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

Doc ID: 1014382