KBRA Downgrades Five Ratings and Affirms All Other Ratings for JPMBB 2016-C1
31 Jan 2025 | New York
KBRA downgrades the ratings of five classes of certificates and affirms all other outstanding ratings of JPMBB 2016-C1, a $750.4 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in KBRA’s estimated losses for four K-LOCs (33.8%) and the resulting loss adjusted C/E levels. The rating actions also consider transaction deleveraging from loan payoffs, amortization and defeasance.
As of the January 2025 remittance period, there are two specially serviced assets (10.8% of pool balance), of which one is REO (0.4% of the pool balance). KBRA identified ten K-LOCs (38.3% of the pool balance), including the specially serviced assets. This includes:
Four top 10 loans (33.8%):
- 5 Penn Plaza (2nd largest, 10.4% of the pool balance, 24.6% loss severity)
- 32 Avenue of the Americas (3rd largest, 9.7%, 26.6%)
- 7700 Parmer (4th largest, 9.3%, 11.7%)
- The 9 (7th largest, 4.4%, 45.9%)
The remaining six K-LOCs do not have estimated losses and represent 4.5% of the pool balance.
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 78.6%, compared to 99.2% at KBRA’s last review and 103.7% at securitization. The KDSC is 1.85x, compared to 1.76x at KBRA’s last review and 1.58x at securitization.
Details concerning the classes with rating changes are as follows:
- Class D-2 to BB- (sf) from BBB- (sf)
- Class D to BB- (sf) from BBB- (sf)
- Class E to CCC (sf) from BB- (sf)
- Class F to CC (sf) from CCC (sf)
- Class X-D to BB- (sf) from BBB- (sf)
To access ratings and relevant documents, click here.
Click here to view the report.