Press Release|CMBS

KBRA Downgrades Four Ratings and Affirms All Other Ratings for NCMS 2022-JERI

12 Apr 2024   |   New York


KBRA downgrades the ratings of four classes of certificates and affirms all other outstanding ratings for NCMS 2022-JERI, a $149.2 million CMBS SASB transaction. The downgrades are the result of the loan’s status with the special servicer, the challenging commercial real estate finance landscape, and current interest rate environment.

The collateral for the transaction is a $149.2 million floating-rate, non-recourse, first lien mortgage loan. The loan is backed by two three-story, Class-A office buildings totaling 665,592 sf in Jericho, New York. There is also $20.0 million of existing mezzanine debt held outside the trust. The IO loan had an initial two-year term that ended in January 2024 with three one-year extension options.

The loan was originally scheduled to mature in January 2024 and the borrower refused to purchase a replacement cap agreement to exercise the first extension option. The loan was subsequently transferred to special servicing and as of March 2024, it is current and listed as matured performing. In a breach of the loan agreement, the borrower distributed about $5.0 million to an outside entity instead of paying expenses related to the property over the last year and a half, according to the servicer. The special servicer appointed a receiver in February 2024, replaced the affiliated management company and initiated judicial foreclosure. The sponsor of the borrower is Menachem Meisner, and the property was previously managed by Onyx Management Group.

KBRA analyzed the cash flow for the property utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $9.8 million and a KBRA value of $103.2 million ($155 per sf). The resulting in-trust KLTV is 144.6%, up from 134.5% at last review and 126.6% at securitization. KBRA identified the loan as a K-LOC and maintained the loan’s KPO of Underperform due to its status with the special servicer and weak fundamentals in the office sector.

Details concerning the classes with ratings changes are as follows:

  • Class C to BBB (sf) from A- (sf)
  • Class D to BB (sf) from BBB- (sf)
  • Class E to B (sf) from BB- (sf)
  • Class F 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: 1003912

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