Press Release|CMBS

KBRA Downgrades Three Ratings and Affirms All Other Ratings for Benchmark 2019-B13

11 Oct 2024   |   New York

Contacts

KBRA downgrades the ratings for three classes and affirms all of the other outstanding ratings for Benchmark 2019-B13, a $906.1 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in estimated losses from two K-LOCs (6.0%), one of which is among the top 10 loans.

As of the September 2024 remittance period, there are three specially serviced assets (6.9% of the pool balance), one of which is in foreclosure (5.0%). KBRA identified six K-LOCs (12.5%), including the specially serviced and matured assets. Of the two K-LOCs, two have estimated losses (6.0%):

  • 900 & 990 Stewart Avenue (6th largest, 5.0% of the pool, 29.2% estimated loss severity)
  • Hotel Indigo Birmingham (1.0%, 41.4%)

The remaining four K-LOCs do not have estimated losses and represent 6.5% of the pool balance.

Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 101.8%, compared to 105.7% at last review and 100.1% at issuance. The KDSC is 1.91x, compared to 1.85x at last review and 1.93x at issuance.

Details concerning the classes with rating changes are as follows:

  • Class F to B+ (sf) from BB- (sf)
  • Class G to B- (sf) from B (sf)
  • Class X-F to B+ (sf) from BB- (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: 1006345

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