Press Release|CMBS

KBRA Downgrades All Ratings for BBSG 2016-MRP

12 Apr 2024   |   New York


KBRA downgrades all ratings for BBSG 2016-MRP, a CMBS SASB transaction. The rating downgrades follow a surveillance review of the transaction, whose KLTV has increased since KBRA’s last rating adjustments in May 2022. The collateral property continues to suffer from low occupancy, and KNCF and KBRA value are meaningfully lower than at securitization.

The transaction collateral is a $162.0 million portion of a $262.0 million non-recourse, first-lien mortgage loan collateralized by the borrower’s fee simple and leasehold interests in 540,867 sf of The Mall at Rockingham Park (MRP), a 1.0 million sf super-regional mall in Salem, New Hampshire. The whole mortgage loan consists of four pari passu senior A notes totaling $142.5 million and two subordinate B notes totaling $119.5 million. The trust collateral includes two senior A notes totaling $42.5 million and the subordinate B notes.

The loan sponsors are Mayflower Realty, LLC and Institutional Mall Investors. Mayflower Realty is a joint venture between Simon Property Group, L.P. (28.2% ownership) and Canadian Pension Plan. Institutional Mall Investors is a venture between California Public Employees' Retirement System (CalPERS) and an affiliate of Miller Capital Advisory, Inc.

The review utilized information obtained from the trustee and servicer to analyze the loan collateral. The analysis produced a KNCF of $16.0 million, in line with our last review. However, in this review KBRA increased its capitalization rate by 100 bps to 10.0% from 9.0%, which lowered our value for the mall to $159.9 million ($296 per sf). The in-trust KLTV is 163.8%, up from 147.0% at last review and 83.8% at securitization. The high KLTV indicates it will be challenging for the borrower to refinance the existing loan without additional equity and that a loan default and disposition could result in a significant loss to the trust.

KBRA maintains the K-LOC designation and the KPO of Underperform because of the decline in the mall’s operating performance, resulting in lower KNCF and higher KLTV.

Details for the classes with ratings changes are as follows:

  • Class A to A (sf) from AA- (sf)
  • Class X to A (sf) from AA- (sf)
  • Class B to BB (sf) from BBB- (sf)
  • Class C to B (sf) from BB- (sf)
  • Class D to B- (sf) from B (sf)
  • Class E to CCC (sf) from B- (sf)

To access rating and relevant documents, click here.

Click here to view the report.

Related Publication



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

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency 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 by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1003845

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