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KBRA Downgrades Five Ratings and Affirms All Other Ratings for JPMCC 2016-JP3

13 Aug 2026   |   New York

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KBRA downgrades the ratings of five classes of certificates and affirms all other outstanding ratings of JPMCC 2016-JP3, a $418.8 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited a worsening in pool performance since KBRA's last ratings change in August 2025. The rating actions also reflect KBRA's estimated losses for five K-LOCs (42.0% of the pool balance) and the resulting loss adjusted C/E levels. If KBRA's estimated losses are realized, class C would incur a principal loss and the balances of classes D, E, and F would be reduced to zero.

As of the July 2026 remittance period, there are seven specially serviced assets (45.4%), of which one (14.3%) is REO, two (11.2%) are in foreclosure, and four (19.8%) are matured non-performing. KBRA identified 11 K-LOCs (80.5%), including the specially serviced assets. Of the K-LOCs, five (42.0%) have estimated losses. The K-LOCs are depicted in the table below:

K-LOCs Loss Given Default (000s) Loss Severity 5 1 Kaiser Plaza OF $60,000 14.3% Y NPM N Specially Serviced 12/04/2024 $31,969 53.3% 6 Salesforce Tower OF $60,000 14.3% N C N Maturity 08/26/2025 - - 04A2EMPC2 Westfield San Francisco Centre MU $60,000 14.3% Y REO N REO 01/24/2022 $61,396 102.3% 8 Crocker Park Phase One & Two MU $36,901 8.8% N C Y Occupancy 06/08/2020 - - 10 Laguna Design Center MU $34,857 8.3% N C Y DSCR 06/30/2025 - - 12 National Business Park OF $28,374 6.8% Y FCL N Foreclosure 11/29/2022 $25,080 88.4% 20 Centrica OF $18,464 4.4% Y FCL N Foreclosure 11/01/2023 $14,543 78.8% 21 Cicero Marketplace RT $14,911 3.6% N C N Maturity 09/26/2024 - - 35 West LA Office - 1950 Sawtelle Boulevard OF $8,959 2.1% Y NPM N Specially Serviced 08/23/2021 $6,096 68.0% 33 Doubletree Fayetteville LO $8,882 2.1% Y NPM N Specially Serviced 04/02/2025 - - 42 Fort Wayne Office Portfolio OF $5,154 1.2% Y NPM N Specially Serviced 7/28/2026 - - Total K-LOCs $336,503 80.5% $139,084 1. K-LOC Date is the date when the most recent K-LOC was initially determined. 2. Loss Given Default assumes a 100% probability of default (PD). KBRA may determine a lower PD when estimating losses to a transaction. KBRA Estimated 2 Prosp. ID Loan Name Prop Type Current In-Trust Balance (000s) % of Deal Balance SS Loan Status Mod (Y/N) Primary K-LOC Reason K-LOC Date 1
Source: KBRA

Details concerning the classes with rating changes are as follows:

  • Class A-S to A (sf) from AAA (sf)
  • Class B to BB (sf) from AA- (sf)
  • Class C to CCC (sf) from BB (sf)
  • Class D to CC (sf) from CCC (sf)
  • Class X-C to CC (sf) from CCC (sf)

To access ratings and relevant documents, click here.

Click here to view the report.

Related Publication

Methodologies

Disclosures

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 www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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