KBRA Affirms All Ratings for UBS 2019-C16
12 Apr 2024 | New York
KBRA affirms all of its outstanding ratings for UBS 2019-C16, a $598.2 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction, which has exhibited a worsening in pool performance since securitization due to the addition of specially serviced loans and K-LOCs. However, the magnitude of the changes does not warrant ratings adjustments at this time.
As of the March 2024 remittance report, there are three specially serviced loans (11.9% of the pool balance), which include one matured non-performing loan (7.9%) and two current loans (4.0%). In addition, one non-specially serviced loan (1.4%) is delinquent. KBRA identified 10 K-LOCs (30.2%), including the special serviced loans. These include three of the top 10 loans:
- The Colonnade Office Complex (largest, 7.9% of the pool balance)
- SkyLoft Austin (3rd largest, 6.0%)
- 489 Broadway (10th largest, 3.2%)
Two K-LOCs have estimated losses:
- Quince Diamond Executive Center (1.4% of the pool balance, 27.7% estimated loss severity)
- 16300 Roscoe Blvd (1.3%, 14.7%)
The remaining five K-LOCs do not have estimated losses and represent 10.5% of the pool.
Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 96.5%, compared to 98.6% at last review and 92.5% at issuance. The KDSC is 1.65x, compared to 1.67x at last review and 1.91x at issuance.
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