KBRA Downgrades Four Ratings and Affirms All Other Ratings for WFCM 2019-C52
12 Jul 2024 | New York
Kroll Bond Rating Agency (KBRA) downgrades four ratings and affirms all other outstanding ratings for WFCM 2019-C52, an $834.2 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in estimated losses from five K-LOCs (10.0% of the pool balance).
As of the June 2024 remittance report, there are two specially serviced loans (5.8%), one of which is 60+ days delinquent (3.2%) and the other loan is current (2.6%). KBRA identified 14 K-LOCs (23.4% of the pool balance), five of which (10.0%) have estimated losses. These include two of the top 10 loans:
- Capital Plaza (4th largest, 4.3%)
- Sugar Creek Center (10th largest, 3.2% of the pool balance, 37.8% estimated loss severity)
Four other K-LOCs have estimated losses:
- Lenox Park (2.7%, 64.3%)
- 188 Spear Street (2.2%, 10.2%)
- 1305 Tacoma (1.0%, 25.0%)
- Central Park Plaza (1.0%, 19.8%)
The remaining eight K-LOCs do not have estimated losses and represent 9.0% of the pool.
Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 99.3%, compared to 100.6% at last review and 98.7% at securitization. The KDSC is 1.83x, compared to 1.88x at last review and 1.96x at issuance.
Details concerning the classes with ratings changes are as follows:
- Class D-RR to BBB- (sf) from BBB (sf)
- Class E-RR to BB- (sf) from BBB- (sf)
- Class F-RR to B- (sf) from BB- (sf)
- Class G-RR to CCC (sf) from B- (sf)
To access rating and relevant documents, click here.
Click here to view the report.