KBRA Downgrades Eight Ratings and Affirms All Other Ratings for MSC 2016-UBS12
6 Dec 2024 | New York
KBRA downgrades the ratings of eight classes of certificates and affirms all other outstanding ratings of MSC 2016-UBS12, a $697.8 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in estimated losses since the last ratings changes in December 2023, primarily associated with the largest loan in the pool, 681 Fifth Avenue (11.5% of the pool balance).
As of the November 2024 remittance report, there are 12 specially serviced assets (19.5%), including one REO asset (2.3%), one delinquent loan (11.5%), and 10 current loans (5.8%). KBRA identified seventeen K-LOCs (37.4%) including the specially serviced loans. These include three top 10 loans:
- 681 Fifth Avenue (largest, 11.5% of the pool balance, 61.4% estimated loss severity)
- Wolfchase Galleria (3rd largest, 9.4%, 33.2% estimated loss severity)
- Vintage Park (7th largest, 5.1%)
Three other K-LOCs have estimated losses:
- Arkansas Multifamily Portfolio (2.3%, 26.1%)
- Courtyard Van Nuys Apartments (0.5%, 37.3%)
- Comfort Suites - Golden Isles Gateway (0.5%, 43.7%)
The remaining 11 K-LOCs do not have estimated losses and represent 8.1% of the pool.
Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 98.7%, compared to 98.8% at the last ratings change in December 2023 and 108.2% at KBRA's previous change in December 2020. The KDSC is 1.62x, compared to 1.68x at KBRA's most recent ratings change and 1.65x at KBRA's previous ratings change.
Details concerning the classes with ratings changes are as follows:
- Class B to A (sf) from AA+ (sf)
- Class C to BBB- (sf) from A- (sf)
- Class D to CCC (sf) from B (sf)
- Class E to CC (sf) from CCC (sf)
- Class F to C (sf) from CC (sf)
- Class X-D to CCC (sf) from B (sf)
- Class X-E to CC (sf) from CCC (sf)
- Class X-F to C (sf) from CC (sf)
To access ratings and relevant documents, click here.
Click here to view the report.