KBRA Withdraws One Rating and Affirms All Other Ratings for WFCM 2022-C62
10 Apr 2025 | New York
KBRA withdraws the rating of one class and affirms all other outstanding ratings for WFCM 2022-C62, a $524.6 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction, which has exhibited a worsening in pool performance compared to securitization including the addition of K-LOCs and specially serviced loans. However, the magnitude of the changes does not warrant ratings adjustments at this time. The rating withdrawal on Class A-1 follows the reduction of its principal balance to zero according to the March 2025 remittance report.
As of the March 2025 remittance period, there are three (8.5% of the pool balance) specially serviced loans, including two (6.8%) in foreclosure. KBRA identified nine K-LOCs (26.3%), including the specially serviced assets. These include four top 10 loans (17.2%):
- Midtown Central Square (3rd largest, 6.2% of the pool, 8.0% estimated loss severity)
- Long Lake Crossing (5th largest, 4.0%)
- 530 Bush Street (7th largest, 3.7%, 22.5%)
- Conyers Plaza (10th largest, 3.3%)
One additional K-LOC has an estimated loss:
- 3450 Broadway (1.7%, 12.9%)
The remaining four K-LOCs do not have estimated losses and represent 7.4% of the pool.
Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 107.0%, compared to 103.1% at last review and 100.0% at securitization. The WA KDSC is 1.88x, compared to 1.95x at last review and 2.00x at securitization.
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