KBRA Affirms the Rating of Argentic Risk Retention Pass Through Certificates, MOA 2020-WC54 E
6 Nov 2026 | New York
KBRA affirms the outstanding BBB- (sf) rating of Argentic Risk Retention Pass Through Certificates, MOA 2020-WC54 E, a $17.8 million pass through certificate. The rating is solely dependent on the rating of the underlying E-RR certificate within WFCM 2019-C54, a CMBS conduit securitization rated by KBRA. The rating action follows a surveillance review of the underlying transaction, which has exhibited a slight worsening in pool performance since securitization, including an increase in the number of K-LOCs in the transaction. However, the magnitude of the changes does not warrant ratings adjustments at this time.
As of the October 2026 remittance period, there is one specially serviced loan (3.2% of the pool balance), that is 60+ days delinquent. KBRA identified eight K-LOCs (16.8%), including the specially serviced asset. Of the K-LOCs, two (4.8%) have estimated losses. Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 108.8%, compared to 109.2% at last review and 105.8% at securitization. The KDSC is 2.02x, compared to 1.95x at last review and compared to 2.02x at securitization.
Rating Sensitivities
The factors that can lead to qualification or change of the rating include: 1) The rating of the pass through certificate is directly and solely dependent on the rating of its underlying collateral certificate, 2) The rating of the underlying collateral certificate is dependent on the performance of the CMBS conduit transaction that issued them, which is a function of the credit behavior of the underlying loans and performance of the properties that serve as loan collateral,and 3) The scope and interpretation of risk retention regulations is largely untested in any legal or regulatory proceedings. Adverse interpretations or actions by legal or regulatory authorities could result in qualification or withdrawal of ratings on the pass through certificate.
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