Press Release|CMBS
View PDF

KBRA Downgrades Two Ratings and Affirms All Other Ratings for CFCRE 2016-C7

25 Nov 2025   |   New York

Contacts

KBRA downgrades the ratings of two classes of certificates and affirms all other outstanding ratings for CFCRE 2016-C7, a $568.8 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited a slight worsening in pool performance since KBRA's last ratings change in November 2024. The rating actions also reflect interest shortfalls affecting up to and including the Class D certificates.

As of the November 2025 remittance period, there is one specially serviced loan (6.0%), which is in foreclosure. KBRA identified two K-LOCs (8.0%), of which only the specially serviced asset has an estimated loss. The K-LOCs are depicted in the table below.

K-LOCs Loss Given Default (000s) Loss Severity 6A2 681 Fifth Avenue MU 34,000 6.0% Y FCL Y Foreclosure 09/30/2020 $22,845 67.2% 18 Residence Inn by Marriott LAX LO 11,396 2.0% N C N DSCR 06/25/2025 - - Total K-LOCs $45,396 8.0% $22,845 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 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 K-LOCs with estimated losses, the transaction’s WA KLTV is 89.1%, compared to 88.7% at last review and 96.6% at securitization. The KDSC is 2.17x compared to 2.22x at last review and 2.01x at securitization.

Details concerning the ratings adjustments are as follows:

  • Class C to BBB- (sf) from BBB+ (sf)
  • Class D to CCC (sf) from B- (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: 1012461