KBRA Downgrades Three Ratings and Affirms All Other Ratings for CF 2019-CF3
15 Nov 2024 | New York
KBRA downgrades the ratings of three classes of certificates and affirms all other outstanding ratings for CF 2019-CF3, a $764.3 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited a worsening in pool performance since securitization due to an increase in estimated losses from two K-LOCs (7.0% of the pool balance), including one top 10 loan.
As of the October 2024 remittance period, there is one specially serviced asset (3.2% of the pool balance) that is in foreclosure. KBRA identified eight K-LOCs (22.6%), including the specially serviced asset. The K-LOCs include:
Four top 10 loans (14.4%), one of which has an estimated loss (3.7%):
- Wells Fargo Place (6th largest, 3.9% of the pool balance)
- 225 Bush (7th largest, 3.7%, 23.6% estimated loss severity)
- 1824 Alton Road (8th largest, 3.4%)
- 180 Water (9th largest, 3.3%)
One additional K-LOC has an estimated loss:
- Gold Brooklyn Multifamily Portfolio (3.2%, 23.5%)
The remaining two K-LOCs do not have estimated losses and represent 4.9% of the pool balance.
Excluding the K-LOCs with losses, the transaction's WA KLTV is 94.4%, compared to 102.5% at last review and 95.5% at securitization. The KDSC is 2.54x, compared to 2.42x at last review and 2.53x at securitization.
Details concerning the classes with rating changes are as follows:
- Class F-RR to BB (sf) from BB+ (sf)
- Class G-RR to B (sf) from BB- (sf)
- Class H-RR to CCC (sf) from B- (sf)
Note: This press release was updated since its initial publication on November 15, 2024 to correct the loss severity for the 225 Bush loan as well as the class names to include "-RR".
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