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KBRA Downgrades Five Ratings and Affirms All Other Ratings for JPMCC 2016-JP4

5 Dec 2025   |   New York

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KBRA downgrades the ratings of five classes of certificates and affirms all other outstanding ratings of JPMCC 2016-JP4, a $782.9 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 (12.1% of the pool balance) since KBRA's last ratings change in December 2024.

As of the November 2024 remittance period, there are four specially serviced assets (14.0% of the pool balance), of which one is REO (2.1%), two are in foreclosure (10.0%) and one is 90+ days delinquent (1.9%). KBRA identified 14 K-LOCs (35.9%), including the specially serviced assets. Of the K-LOCS, three (12.1%) have estimated losses. The K-LOCs are depicted in the table below.

K-LOCs Loss Given Default (000s) Loss Severity 4 Riverway OF 54,245 6.9% Y 90+ N Foreclosure 08/13/2020 $41,526 76.6% 6 Summit Mall RT 50,000 6.4% N C N Occupancy 11/25/2024 - - 11 International Plaza OF 24,714 3.2% N C N DSCR 09/14/2023 - - 14 1140 Avenue of the Americas OF 24,000 3.1% Y 90+ N Specially Serviced 08/31/2021 $21,180 88.2% 13 Bilmar Beach Resort LO 20,743 2.6% N C N Property Damage 10/23/2024 - - 18 80 Park Plaza OF 18,312 2.3% N C N Occupancy 04/25/2024 - - 22 Salesforce Tower OF 18,000 2.3% N C N Maturity 08/26/2025 - - 21 Franklin Marketplace RT 16,099 2.1% Y NPM N REO 12/11/2018 $13,254 82.3% 23 Dick's Sporting Goods Portfolio RT 14,947 1.9% Y 90+ Y Delinquent 07/24/2025 - - 26 Market at Hilliard RT 13,766 1.8% N C N Lease Rollover 09/25/2024 - - 30 Timbergrove Heights MF 8,619 1.1% N C N DSCR 05/07/2024 - - 32 Southwest Business Center IN 6,882 0.9% N C N Occupancy 07/29/2024 - - 31 Home2 Suites Lubbock LO 6,610 0.8% N C N Recent Delinquency 03/11/2025 - - 38 West Hills Plaza RT 3,749 0.5% N C N DSCR 07/24/2025 - - Total K-LOCs $280,687 35.9% $75,960 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 the K-LOCs with estimated losses, the transaction’s WA KLTV is 83.7% compared to 85.0% at last review and 94.8% at securitization. The KDSC is 2.26x compared to 2.30x at last review and 2.17x 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)
  • Class E to CC (sf) from CCC (sf)
  • Class F to C (sf) from CC (sf)
  • Class X-C to CCC (sf) from B

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.

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