KBRA Downgrades Seven Ratings and Affirms All Other Ratings for MSBAM 2016-C30

KBRA downgrades the ratings of seven classes of certificates and affirms all other outstanding ratings of MSBAM 2016-C30, a $761.3 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in KBRA’s estimated losses on four K-LOCs (18.3%), two of which are among the top ten loans.

As of the August 2024 remittance period, there is one specially serviced REO asset (0.6% of the pool balance). KBRA identified seven K-LOCs (27.8%), including the specially serviced asset. This includes three of the top 10 loans (20.7%):

Briarwood Mall (3rd largest, 9.2%, 43.0% loss severity)
Bellevue Park Corporate Center (5th largest, 6.8%, 16.6%)
Flagler Corporate Center (6th largest, 4.7%)

Two other K-LOCs have an estimated loss:

West LA Office - 1950 Sawtelle Boulevard (1.7% of the pool balance, 24.7% estimated loss severity)
Tinley Point Center (0.6%, REO, 106.3%)

The remaining two K-LOCs do not have estimated losses and represent 4.8% of the pool balance.

Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 86.2%, compared to 89.1% at last review and 90.7% at securitization. The KDSC is 2.40x, compared to 2.34x at last review and 2.36x at securitization.

Details concerning the ratings changes are as follows:

Class C to A- (sf) from A (sf)
Class D to BB (sf) from BBB (sf)
Class E to B- (sf) from BB (sf)
Class F to CCC (sf) from B- (sf)
Class X-D to BB (sf) from BBB (sf)
Class X-E to B- (sf) from BB (sf)
Class X-F to CCC (sf) from B- (sf)

KBRA Downgrades Seven Ratings and Affirms All Other Ratings for MSBAM 2016-C30

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