KBRA Downgrades Two Ratings and Affirms All Other Ratings for JPMCC 2019-COR5
13 Jun 2024 | New York
KBRA downgrades the ratings of two classes of certificates and affirms all other outstanding ratings of JPMCC 2019-COR5, a $664.7 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in the loans identified as K-LOCs (29.2% of the pool balance), as well as an increase in the estimated pool losses since last review.
As of the May 2024 remittance period, there are 21 specially serviced loans (18.5% of the pool balance). KBRA identified 24 K-LOCs (29.2%), including two top 10 loans (11.3%), both of which have estimated losses:
- Hampton Roads Office Portfolio (largest, 7.0% of the pool balance, 1.8% estimated loss severity)
- Gateway Center (10th largest, 4.3%, 19.8%)
There are two other K-LOCs with estimated losses:
- Legends at Kingsville II (1.9%, 12.3%)
- Greenleaf at Howell (1.4%, 41.4%)
The remaining 20 K-LOCs do not have estimated losses and represent 14.6% of the pool balance. These include 18 K-LOCs (8.2%) collateralized by cooperative multifamily properties that have transferred to the special servicer due to maturity default.
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 95.7%, compared to 99.6% at last review and 98.9% at issuance. The KDSC is 1.65x, compared to 1.67x at last review and 1.71x at issuance.
Details concerning the classes with ratings changes are as follows:
- Class F-RR to BB- (sf) from BB (sf)
- Class G-RR to B- (sf) from B+ (sf)
To access rating and relevant documents, click here.
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