KBRA Downgrades Four Ratings and Affirms All Other Outstanding Ratings for WFCM 2019-C50
1 May 2025 | New York
KBRA downgrades the ratings of four classes of certificates and affirms all other outstanding ratings of WFCM 2019-C50, an $814.6 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in estimated losses since KBRA's last ratings change in May 2024. Additionally, the transaction has exhibited an increase in interest shortfalls, which have reached higher in the capital structure and impacted five classes of certificates (E, F, G, H, and VRR). Interest shortfalls are primarily attributable to trust expenses associated with special servicing fees, servicer advances, and ASERs associated with the trust's specially serviced assets as well as Other Shortfalls related to the bankruptcy of three of the five properties securing the InnVite Hospitality Portfolio loan (2.3% of the pool balance).
As of the April 2025 remittance report, there are six specially serviced assets (13.3%), including one REO asset (1.8%), one loan (1.0%) that is in foreclosure, and three other loans (7.1%) that are 90+ days delinquent. KBRA has identified 11 K-LOCs (19.5%), including the specially serviced assets. The K-LOCs include two (7.4%) top 10 loans:
- Ohio Hotel Portfolio (4th largest, 4.0% of the pool balance, 13.7% estimated loss severity)
- The Colonnade Office Complex (8th largest, 3.4%)
Seven (10.2%) other K-LOCs have estimated losses:
- 839 Broadway (2.7%, 28.6%)
- InnVite Hospitality Portfolio (2.3%, 47.3%)
- 24 Commerce Street (1.8%, 78.4%, REO)
- Midtown Plaza (1.6%, 5.6%)
- Fairfield Inn & Suites - Colorado Springs North (0.8%, 18.8%)
- 7240 Parkway Drive (0.6%, 16.0%)
- Eagle Creek Plaza (0.5%, 12.6%)
The remaining two K-LOCs, representing 1.9% of the pool balance, do not have estimated losses.
Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 102.4%, compared to 103.2% at KBRA’s last ratings change in May 2024 and 100.4% at securitization. The KDSC is 1.52x, which is in line with KBRA’s last ratings change and down from 1.68x at securitization.
Details concerning the classes with rating changes are as follows:
- Class E to BB (sf) from BBB- (sf)
- Class F to B- (sf) from B (sf)
- Class X-D to BB (sf) from BBB- (sf)
- Class X-F to B- (sf) from B (sf)
To access ratings and relevant documents, click here.
Click here to view the report.