KBRA Downgrades Six Ratings and Affirms All Other Ratings for BBCMS 2019-C4
9 Aug 2024 | New York
KBRA downgrades the ratings of six classes and affirms all other outstanding ratings for BBCMS 2019-C4, an $869.4 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in estimated losses from four K-LOCs (10.6% of the pool balance).
As of the July 2024 remittance period, there are five specially serviced assets (5.9% of the pool balance), of which two are REO (1.5%) and two (2.5%) are in foreclosure. KBRA identified 14 K-LOCs (19.7%), including the specially serviced assets. These include one of the top 10 loans:
- 188 Spear Street (2nd largest, 6.9%, 10.2% estimated loss severity)
Three other K-LOCs have estimated losses:
- Meidinger Tower (2.2%, 63.8%)
- Hampton Inn El Reno (0.8%, 39.8%)
- Holiday Inn Express & Suites El Reno (0.8%, 61.6%)
The remaining 10 K-LOCs do not have estimated losses and represent 9.3% of the pool.
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 95.6%, compared to 97.6% at last review and 96.8% at securitization. The KDSC is 2.01x, unchanged from last review and up from 1.98x at securitization.
Details concerning the classes with ratings changes are as follows:
- Class E to BB (sf) from BBB- (sf)
- Class F to B (sf) from BB- (sf)
- Class G to CCC (sf) from B- (sf)
- Class X-D to BB (sf) from BBB- (sf)
- Class X-F to B (sf) from BB- (sf)
- Class X-G to CCC (sf) from B- (sf)
To access rating and relevant documents, click here.
Click here to view the report.