KBRA Downgrades Six Ratings and Affirms All Other Ratings for COMM 2016-COR1

KBRA downgrades the ratings of six classes of certificates and affirms all other ratings for COMM 2016-COR1, a $763.4 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited a worsening in pool performance since securitization including an increase in specially serviced loans and K-LOCs since last review. The rating actions also reflect KBRA's estimated losses for four K-LOCs (9.5% of the pool balance) and the resulting loss adjusted C/E levels.

As of the June 2024 remittance period, there are three specially serviced assets (7.5% of the pool balance), of which two (4.9%) are in foreclosure and one (2.6%) is 30+ days delinquent. KBRA identified ten K-LOCs (28.2%), including the specially serviced assets. Of the K-LOCs, four (9.5%) have estimated losses. The K-LOCs include:

Five of the top 10 non-defeased loans (18.4%):

Three other K-LOCs have an estimated loss:

Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 106.4%, compared to 103.5% at last review and 101.1% at securitization. The KDSC is 1.59x, compared to 1.73x at last review and 1.78x at securitization.

Details concerning the classes with ratings changes are as follows:

To access rating and relevant documents, click here.

Click here to view the report.

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