KBRA Affirms All Ratings for FREMF 2016-K60
21 Mar 2025 | New York
KBRA affirms all of its outstanding ratings for FREMF 2016-K60, a $990.0 million CMBS multi-borrower transaction. All loans were originated in conjunction with the Federal Home Loan Mortgage Corporation's (Freddie Mac) K-Deal program. The affirmations follow a surveillance review of the transaction, which has exhibited stable pool performance since KBRA’s last ratings change in March 2024.
As of the February 2025 remittance period, none of the loans are specially serviced or delinquent; however, KBRA identified four K-LOCs (6.0% of the pool balance), of which three (4.7%) have estimated losses. This includes one top 10 loan:
- Hawks Ridge (8th largest, 2.4% of the pool balance, 20.5% estimated loss severity)
Two additional K-LOCs have estimated losses:
- Campus Quarters (1.4%, 13.2%)
- Islander Village (1.0%, 30.3%)
The remaining K-LOC does not have an estimated loss and represents 1.3% of the pool balance.
Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 82.6%, compared to 86.1% at last ratings change and 119.5% at securitization. The KDSC is 2.01x, compared to 1.94x at last ratings change and 1.64x at securitization.
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