KBRA Upgrades Two Ratings and Affirms All Other Ratings for FREMF 2014-K40
18 Jun 2024 | New York
KBRA upgrades the ratings of two classes and affirms all other outstanding ratings for FREMF 2014-K40, a $1.2 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 May 2024 remittance period, none of the loans are specially serviced or delinquent; however, KBRA identified two K-LOCs (3.6% of the pool balance), neither of which have estimated losses. These include:
Two of the top 10 loans:
- Fairwinds Rio Rancho and Van Mall Retirement Center (3rd largest, 2.8%)
- Metro Park Apartment Homes (10th largest, 0.8%)
The transaction's WA KLTV is 69.6%, compared to 90.4% at KBRA's last ratings change and 106.4% at securitization. The KDSC is 2.04x, compared to 1.67x at KBRA's last ratings change and 1.51x at securitization.
Details concerning the classes with ratings changes are as follows.
- Class B to AAA (sf) from AA+ (sf)
- Class C to AA- (sf) from A+ (sf)
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