KBRA Downgrades Five Ratings and Affirms All Other Ratings for CSAIL 2019-C17
13 Sep 2024 | New York
KBRA downgrades the ratings of five classes of certificates and affirms all other outstanding ratings for CSAIL 2019-C17, a $748.4 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 two K-LOCs (15.3% of the pool balance), both of which are secured by office properties and are among the top ten loans.
As of the August 2024 remittance period, there is one specially serviced asset (5.3%). KBRA identified five K-LOCs (18.7%), including the specially serviced asset. Of the K-LOCs, two (15.3%) have estimated losses. The K-LOCs include:
Two of the top 10 assets (15.3%):
- Selig Office Portfolio (largest, 10.0% of the pool balance, 25.4% estimated loss severity)
- APX Morristown (5th largest, 5.3%, 9.4%)
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 102.2%, compared to 106.0% at last review and 105.9% at securitization. The KDSC is 1.68x, compared to 1.65x at last review and 1.67x at securitization.
Details concerning the classes with rating changes are as follows:
- Class D to BBB (sf) from BBB+ (sf)
- Class E-RR to BBB- (sf) from BBB (sf)
- Class F-RR to BB- (sf) from BB (sf)
- Class G-RR B- (sf) from B+ (sf)
- Class X-D to BBB (sf) from BBB+ (sf)
To access rating and relevant documents, click here.
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