KBRA Downgrades Five Ratings, Withdraws Two Ratings and Affirms All Other Ratings for WFRBS 2014-C22
9 Aug 2024 | New York
KBRA downgrades the ratings of five classes of certificates, withdraws two ratings and affirms all other outstanding ratings for WFRBS 2014-C22, a $777.5 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction which has exhibited an increase in realized losses and KBRA's estimated losses since KBRA's last rating change in August 2023. The estimated losses are from five K-LOCs (41.2% of the pool balance), including four of the top 10 loans (40.4%). The rating actions also consider deleveraging of the transaction from loan payoffs, amortization and defeasance, as well as the risk of interest shortfalls reaching higher in the capital structure as the special servicer resolves the specially serviced assets and those loans unable to payoff at their upcoming maturity. The rating withdraws on classes A-4 and A-SB follow the reduction of their respective principal balances to zero according to the July 2024 remittance report.
As of the July 2024 remittance period, there are four specially serviced assets (27.0%), of which one (0.7%) is 90+ days delinquent. KBRA identified 11 K-LOCs (61.7%), including the specially serviced assets. Of the K-LOCs, five (41.2%) have estimated losses. The K-LOCs include:
Five (55.2%) of the top 10 loans:
- Bank of America Plaza (largest, 19.3% of the pool balance, 35.4% estimated loss severity)
- Columbus Square Portfolio (2nd largest, 14.8%)
- Stamford Plaza Portfolio (3rd largest, 11.8%, 58.6%)
- Offices at Broadway Station (4th largest, 6.1%, 14.4%)
- 400 Atlantic Avenue (8th largest, 3.2%, 40.0%)
One other K-LOC has an estimated loss:
- 81 Washington Avenue (0.8%, 32.8%)
The remaining five K-LOCs do not have estimated losses and represent 5.7% of the pool balance.
Details concerning the classes with rating changes are as follows:
- Class B to A (sf) from AA- (sf)
- Class C to BBB (sf) from A- (sf)
- Class D to CC (sf) from BB- (sf)
- Class E to C (sf) from CCC (sf)
- Class X-C to C (sf) from CCC (sf)
To access rating and relevant documents, click here.
Click here to view the report.