KBRA Downgrades Four Ratings and Affirms All Other Ratings for JPMDB 2016-C4
4 Oct 2024 | New York
KBRA downgrades the ratings of four classes of certificates and affirms all other outstanding ratings for JPMDB 2016-C4, a $949.4 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in estimated losses since last ratings change in October 2023. In addition, there are three office loans (13.8% of pool balance) in the top 10 that are underperforming and could pose additional risk as the loans reach their maturity.
As of the September 2024 remittance period, there are two specially serviced assets (4.7% of the pool balance). KBRA identified seven K-LOCs (18.9%), including the specially serviced assets. Of the K-LOCs, two (4.7%) have estimated losses:
- Westfield San Francisco Centre (2.5%, 63.6% estimated loss severity)
- Riverwood Corporate Center I & III (2.2%, 63.7%)
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 96.7%, compared to 93.2% at last ratings change and 95.9% at securitization. The WA KDSC is 2.02x, compared to 2.12x at last ratings change and 2.10x at securitization.
Details concerning the classes with rating changes are as follows:
- Class D to BB- (sf) from BB (sf)
- Class E to CCC (sf) from B- (sf)
- Class F to CC (sf) from CCC (sf)
- Class X-C to BB- (sf) from BB (sf)
To access rating and relevant documents, click here.
Click here to view the report.
Related Publication
Methodologies
- CMBS: North American CMBS Property Evaluation Methodology
- CMBS: North American CMBS Single Borrower & Large Loan Rating Methodology
- CMBS: North American CMBS Multi-Borrower Rating Methodology
- CMBS: Methodology for Rating Interest-Only Certificates in CMBS Transactions
- Structured Finance: Global Structured Finance Counterparty Methodology
- ESG Global Rating Methodology