KBRA Downgrades Five Ratings and Affirms All Other Ratings for WFCM 2014-LC18
17 Oct 2024 | New York
KBRA downgrades the ratings of five classes of certificates and affirms all other outstanding ratings of WFCM 2014-LC18, a $685.0 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in estimated losses from nine K-LOCs (16.0% of the pool balance), three of which are within the top 10 loans. The rating action also considers the deleveraging of the transaction from loan pay-offs, amortization, and defeasance.
As of the September 2024 remittance period, there are five (15.4%) specially serviced assets, one of which is delinquent (2.5%) and four (12.9%) are current. KBRA identified 11 K-LOCs (21.1%), including the specially serviced loans. These include four top 10 loans:
- Hilton Garden Inn Cupertino (4th largest, 4.7% of the pool balance, 25.5% estimated loss severity)
- Colorado Mills (5th largest, 4.6%)
- YRC Headquarters (7th largest, 2.5%, 62.0%)
- Hilton Garden Inn Austin Northwest (9th largest, 2.4%, 15.9%)
Six other K-LOCs have estimated losses:
- Coral Gables Retail (1.8%, 30.1%)
- Oneida and Holmgren Way (1.7%, 54.8%)
- 13201 Northwest Freeway (1.3%, 8.5%)
- 10100 North Central Expressway(1.0%, 11.4%)
- Holiday Inn Express Portales (0.4%, 6.5%)
- Pennington point Offices (0.3%, 22.5%)
The remaining K-LOC does not have an estimated loss and represents 0.5% of the pool balance.
Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 81.8%, compared to 87.6% at last review and 97.1% at securitization. The KDSC is 1.89x, compared to 1.94x at last review and 2.02x at issuance.
Details concerning the classes with ratings changes are as follows:
- Class D to BB (sf) from BBB- (sf)
- Class E to B- (sf) from BB- (sf)
- Class F to CC (sf) from B- (sf)
- Class X-E to B- (sf) from BB- (sf)
- Class X-F to CC (sf) from B- (sf)
To access ratings and relevant documents, click here.
Click here to view the report.