KBRA Downgrades Four Ratings and Affirms All Other Ratings for CSAIL 2019-C18
6 Dec 2024 | New York
KBRA downgrades the ratings of four classes of certificates and affirms all other outstanding ratings of CSAIL 2019-C18, a $610.6 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in KBRA’s estimated losses for three K-LOCs (8.5%) and the resulting loss adjusted C/E levels. The rating also considers the transaction's capital structure, particularly the senior part of the stack, which has benefitted from deleveraging from loan payoffs, amortization, and defeasance.
As of the November 2024 remittance period, there is one matured and non-performing loan (3.1% of the pool balance) that is specially serviced. KBRA identified seven K-LOCs (12.8%), including the non-performing loan. These include:
Two of the top Ten Loans (6.4%):
- Redwood Technology Center (6th largest, 3.3% of the pool balance, 26.2% loss severity)
- United Healthcare Office (7th largest, 3.1%, 15.9%)
One other loan has an estimated an estimated loss:
- 3100 Alvin Devane (2.1%, 9.1%)
The remaining four K-LOCs represent 4.3% of the pool balance and do not have estimated losses.
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 95.8%, compared to 96.3% at last review and 102.0% at issuance. The KDSC is 2.05x, compared to 2.07x at last review and 2.06x at issuance.
Details concerning the classes with rating changes are as follows:
- Class F to BB- (sf) from BB (sf)
- Class G to B- (sf) from B+ (sf)
- Class X-F to BB- (sf) from BB (sf)
- Class X-G to B- (sf) from B+ (sf)
To access ratings and relevant documents, click here.
Click here to view the report.