Press Release|CMBS

KBRA Downgrades Six Ratings and Affirms All Other Ratings for BBCMS 2019-C4

9 Aug 2024   |   New York

Contacts

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.

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) is a full-service credit rating agency 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 by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1005454

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