KBRA Downgrades Six Ratings and Affirms All Other Ratings for CFCRE 2016-C7
27 Nov 2024 | New York
KBRA downgrades the ratings of six classes of certificates and affirms all other outstanding ratings of CFCRE 2016-C7, a $574.4 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction. The rating downgrades are primarily driven by the increase in our estimated loss for 681 Fifth Avenue (6thlargest, 5.9% of the pool balance) as well as actual losses incurred by the trust to date. The affirmations are based mostly on the stable credit metrics for the remainder of the pool since KBRA's last ratings changes in December 2023.
As of the November 2024 remittance period, there is one specially serviced loan (5.9%), which is in foreclosure. KBRA identified three K-LOCs (6.5%), which includes one top 10 loan (5.9%) that has an estimated loss. The remaining two K-LOCs do not have estimated losses and represent 0.6% of the pool balance.
Excluding the K-LOC with an estimated loss, the transaction’s WA KLTV is 88.7%, compared to 88.4% at last review and 96.6% at securitization. The KDSC is 2.22x compared to 2.13x at last review and 2.01x at securitization.
Details concerning the classes with rating changes are as follows:
- Class C to BBB+ (sf) from A- (sf)
- Class D to B- (sf) from B (sf)
- Class E to CC (sf) from CCC (sf)
- Class F to C (sf) from CC (sf)
- Class X-E to CC (sf) from CCC (sf)
- Class X-F to C (sf) from CC (sf)
To access ratings and relevant documents, click here.
Click here to view the report.
Related Publication
Methodologies
- CMBS: North American CMBS Multi-Borrower Rating Methodology
- CMBS: North American CMBS Property Evaluation Methodology
- CMBS: North American CMBS Single Borrower & Large Loan Rating Methodology
- CMBS: Methodology for Rating Interest-Only Certificates in CMBS Transactions
- Structured Finance: Global Structured Finance Counterparty Methodology
- ESG Global Rating Methodology