KBRA Upgrades Two Ratings and Affirms All Other Ratings for FREMF 2016-K54
22 Mar 2024 | New York
KBRA upgrades the ratings of two classes and affirms all other outstanding ratings for FREMF 2016-K54, a $1.3 billion CMBS multi-borrower transaction. All loans were originated in conjunction with the Federal Home Loan Mortgage Corporation’s (Freddie Mac) K-Deal program. The rating actions follow a surveillance review of the transaction, which has exhibited an improvement in pool performance since KBRA's last ratings change in August 2022. In addition, the rating actions reflect transaction deleveraging from loan defeasances and amortization.
As of the February 2024 remittance period, none of the loans are specially serviced or delinquent; however, KBRA identified four K-LOCs (6.3% of the pool balance). These include:
Two top 10 loans (5.0%):
- Twenty One Eleven Holly Hall Apartments (4th largest, 2.7% of the pool)
- Woodchase Apartments Homes (7th largest, 2.3%)
One K-LOC has an estimated loss:
- Chestnut Crossing (0.4% of the pool balance, 23.9% estimated loss severity)
The remaining K-LOC does not have an estimated loss and represents 0.9% of the pool balance.
Excluding the K-LOC with an estimated loss, the transaction's WA KLTV is 94.8%, compared to 105.2% at KBRA's last ratings change and 114.0% at securitization. The KDSC is 1.79x, compared to 1.55x at KBRA's last ratings change and 1.42x at securitization.
Details concerning the classes with ratings changes are as follows:
- Class B to AA+ (sf) from AA- (sf)
- Class C to A (sf) from A- (sf)
To access rating and relevant documents, click here.
Click here to view the report.