KBRA Downgrades Five Ratings and Affirms All Other Ratings for JPMCC 2016-JP4
6 Dec 2024 | New York
KBRA downgrades the ratings of five classes of certificates and affirms all other outstanding ratings of JPMCC 2016-JP4, an $811.9 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in KBRA's estimated losses on three of the K-LOCs (11.7% of the pool balance) since KBRA's last ratings change in December 2023.
As of the November 2024 remittance period, there are two specially serviced assets (8.7% of the pool balance), of which one is REO (2.0%) and one is in foreclosure (6.7%). KBRA identified ten K-LOCs (25.7%), including the specially serviced assets. These include three of the top 10 loans (12.8%):
- Riverway (5th largest, 6.7% of the pool balance, 47.9% estimated loss severity)
- International Plaza (9th largest, 3.1%)
- 1140 Avenue of the Americas (10th largest, 3.0%, 63.7%)
One other K-LOC has an estimated loss:
- Franklin Marketplace (2.0%, 76.8%)
The remaining six K-LOCs do not have estimated losses and represent 10.9% of the pool balance. Additional details can be found in the K-LOC Summary section of this report.
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 85.0% compared to 86.3% at last review and 94.8% at securitization. The KDSC is 2.30x compared to 2.27x at last review and 2.17x at securitization.
Details concerning the classes with ratings changes are as follows:
- Class C to BBB+ (sf) from A- (sf)
- Class D to B (sf) from BBB- (sf)
- Class E to CCC (sf) from B (sf)
- Class F to CC (sf) from CCC (sf)
- Class X-C to B (sf) from BBB- (sf)
To access ratings and relevant documents, click here.
Click here to view the report.