KBRA Affirms All Ratings for BBCMS 2019-C3
31 May 2024 | New York
KBRA affirms all of its outstanding ratings for BBCMS 2019-C3, a $904.6 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction, which has exhibited a worsening in pool performance since securitization including five loans in the top ten loans (21.3% of the pool balance) that have a KPO of Underperform, three of which are also identified as K-LOCs. However, the magnitude of the changes does not warrant rating adjustments at this time.
As of the May 2024 remittance period, there are four specially serviced assets (9.8%), of which two (2.6%) are delinquent and one (3.3%) is matured non-performing. KBRA identified eight K-LOCs (16.3%), of which two (2.6%) have estimated losses. These include:
Three of the top 10 loans (11.9%) which do not have estimated losses:
- Renaissance Fort Lauderdale (5th largest, 4.7% of total pool balance)
- NEMA San Francisco (8th largest, 3.9%)
- The Colonnade Office Complex (10th largest, 3.3%)
Two other K-LOCs have estimated losses:
- 4201 Connecticut Avenue NW (2.3%, 25.7% estimated loss severity)
- 123 Whiting Street (0.3%, 8.6%)
The remaining three K-LOCs do not have estimated losses and represent 1.8% of the pool balance.
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 101.5%, compared to 101.7% at last review and 98.6% at securitization. The KDSC is 1.75x, which is in line with last review and down from 1.80x at securitization.
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