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KBRA Upgrades Four Ratings and Affirms All Other Ratings for Shops at Crystals 2016-CSTL

12 Mar 2026   |   New York

Contacts

KBRA upgrades the ratings of four classes of certificates and affirms all other outstanding ratings for the Shops at Crystals 2016-CSTL, a $300.0 million CMBS SASB transaction. The rating actions follow a surveillance review of the transaction, which has exhibited sustained improvement in performance since issuance as evidenced by a consistently increasing KNCF and declining KLTV. Since securitization, KNCF has increased 32.0%, while KLTV has declined to 66.0% from 84.1% at issuance. In taking these rating actions, we also considered the quality and location of the collateral property, the experience of the loan sponsor, the near-term loan maturity and higher interest rate environment, as well as the small decline in performance of the Las Vegas lodging market last year.

The transaction collateral consists of a single, non-recourse first mortgage loan secured by the borrower’s fee simple interest in The Shops at Crystals, a 262,327-sf luxury shopping center located on the Las Vegas Strip in Las Vegas, Nevada. The loan sponsors are subsidiaries of Simon Property Group, L.P. and Invesco Core Real Estate-USA, L.P. The trust collateral consists of a $300.0 million portion of a $550.0 million interest-only, first lien mortgage loan. The whole mortgage loan is represented by 11 pari passu senior A notes and 20 subordinate notes. The trust collateral includes three of the senior A notes totaling $112.0 million and 12 subordinate notes totaling $188.0 million. The loan is scheduled to mature on July 1, 2026. According to the servicer, the borrower is currently pursuing a refinance, with a payoff expected in 2Q26.

KBRA analyzed the cash flow for the property utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $60.4 million and a KBRA value of $833.6 million ($3,178 per sf). The resulting KLTV is 66.0%, compared to 72.7% at last review and 84.1% at securitization. KBRA raises its KPO to Outperform based on the improvement in KNCF and KLTV since issuance.

Details concerning the classes with ratings changes are as follows:

  • Class B to AAA (sf) from AA- (sf)
  • Class C to AA (sf) from A- (sf)
  • Class D to A (sf) from BBB- (sf)
  • Class E to BBB (sf) from BB (sf)

To access ratings 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), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1013924