KBRA Withdraws One Rating and Affirms All Other Ratings for WFCM 2020-C56
31 May 2024 | New York
KBRA withdraws its AAA (sf) rating on Class A-1 of WFCM 2020-C56, a $712.5 million CMBS conduit transaction, following the reduction of the principal balance of the rated security to zero as reflected in the transaction’s May 2024 remittance report. There were no principal losses or interest shortfalls reported on the withdrawn rated security during its life. In addition, KBRA affirms all of its other outstanding ratings for the deal, following a surveillance review of the transaction, which has exhibited stable credit metrics since issuance.
As of the May 2024 remittance period, the largest asset, Supor Industrial Portfolio (6.9% of the pool balance), is specially serviced and in foreclosure. KBRA identified seven K-LOCs (21.2%), including the specially serviced asset. The K-LOCs include three top 10 loans (14.6%):
- Supor Industrial Portfolio (largest, 6.9%)
- Met Center 15 (9th largest, 4.2% of the pool balance, 33.5% estimated loss severity)
- 650 Madison Avenue (10th largest, 3.5%)
The remaining four K-LOCs do not have estimated losses and represent 6.6% of the pool balance.
Excluding the K-LOC with an estimated loss, the transaction’s WA KLTV is 103.7%, compared to 102.1% at last review and 101.4% at securitization. The KDSC is 2.06x, compared to 2.09x at last review and securitization.
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