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KBRA Downgrades Three Ratings, Withdraws One Rating, and Affirms All Other Ratings for CGCMT 2016-P4

29 May 2026   |   New York

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KBRA downgrades the ratings of three classes, withdraws the rating on one class, and affirms all other outstanding ratings for CGCMT 2016-P4, a $346.0 million CMBS conduit transaction. The transaction has been reduced to 20 loans with an aggregate balance of $346.0 million, from 44 loans totaling $721.2 billion at securitization. The rating actions are based on our estimated losses of $15.9 million (which, if realized, would impact the class D certificates and below) and corresponding recoveries; realized losses of $50.8 million, which were allocated to classes E and below; and current interest shortfalls affecting the class E certificates and below. The realized losses are attributed to the November 2025 liquidation of the 401 South State Street REO asset ($32.0 million in-trust loan balance at issuance) and cumulative non-recoverable reimbursements to the servicer for the asset prior to its liquidation.

As of the May 2026 remittance period, there are four specially serviced assets (22.4% of the pool balance). KBRA identified seven K-LOCs (33.3%), including the specially serviced assets. Of the K-LOCs, four (22.3%) have estimated losses. The K-LOCs are depicted in the table below:

K-LOCs Loss Given Default (000s) Loss Severity 3 Esplanade I OF 33,613 9.7% Y C Y Specially Serviced 05/23/2023 $8,192 24.4% 8 Marriott Midwest Portfolio LO 25,079 7.2% Y FCL Y Foreclosure 05/20/2020 $6,857 27.3% 15 Highridge Crossing RT 15,151 4.4% N C N Lease Rollover 04/03/2025 - - 19 247 Bedford Avenue RT 13,850 4.0% N NPM N Non-Peforming Matured 05/20/2026 - - 26 Park Place OF 9,645 2.8% Y NPM N Non-Peforming Matured 02/03/2025 $2,485 25.8% 25 Westgate Shopping Center RT 9,216 2.7% Y C N Specially Serviced 02/05/2020 - - 28 600 Independence Parkway OF 8,745 2.5% N C N Maturity 09/03/2024 $1,138 13.0% Total K-LOCs $115,299 33.3% $18,672 1. K-LOC Date is the date when the most recent K-LOC was initially determined. 2. Loss Given Default assumes a 100% probability of default (PD). KBRA may determine a lower PD when estimating losses to a transaction. KBRA Estimated 2 Prosp. ID Loan Name Prop Type Current In-Trust Balance (000s) % of Deal Balance SS Loan Status Mod (Y/N) Primary K-LOC Reason K-LOC Date 1
Source: KBRA

Excluding K-LOCs with estimated losses, the WA KLTV is 92.1%, which is unchanged from 92.1% at KBRA's last ratings change in May 2025 and compares to 102.8% at securitization. The KDSC is 1.64x, compared to 1.62x at KBRA's last rating change and 1.61x at securitization.

Details concerning the withdraw are as follows:

  • Class A-3 to WR (sf) from AAA (sf)

Details concerning the ratings changes are as follows:

  • Class C to BB (sf) from BBB- (sf)
  • Class D to CC (sf) from B- (sf)
  • Class X-C to CC (sf) from B- (sf)

To access ratings and relevant documents, click here.

Click here to view the report.

Related Publication

Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1015218