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KBRA Downgrades Seven Ratings and Affirms All Other Outstanding Ratings for SGCMS 2016-C5

2 Jul 2026   |   New York

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KBRA downgrades the ratings of seven classes of certificates and affirms all other outstanding ratings of SGCMS 2016-C5, a $218.8 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in modeled losses compared to KBRA's last ratings change in July 2025.

As of the June 2026 remittance period, there are nine specially serviced assets (73.8% of the pool balance), of which two (14.3%) are REO, three (21.8%) are in foreclosure, and three (29.4%) are matured non-performing. One additional loan (1.9%) has transferred to the special servicer since the June remittance data was published, which is matured non-performing. Therefore, 10 assets are specially serviced (75.8%). KBRA identified 11 K-LOCs (78.0%), including the specially serviced assets. Of the K-LOCs, six (38.7%) have estimated losses. The K-LOCs are depicted in the table below:

K-LOCs Loss Given Default (000s) Loss Severity 1 The Mall at Rockingham Park RT $40,000 18.3% Y NP N Non-Performing Maturity Balloon 05/16/2022 - - 9 South Pointe Apartments MF $21,882 10.0% Y REO N REO 06/06/2024 $7,723 35.3% 10 East Lake Tower Corporate Center OF $19,719 9.0% Y FCL N Foreclosure 03/07/2024 $17,719 89.9% 8 3501 Corporate Parkway OF $18,120 8.3% Y C N Specially Serviced 03/30/2026 - - 11 Peachtree Mall RT $17,059 7.8% Y FCL N Foreclosure 04/08/2020 $4,914 28.8% 22 Residence Inn by Marriott LAX LO $12,473 5.7% Y NP Y Specially Serviced 06/25/2025 $8,473 67.9% 15 OZRE Leased Fee Portfolio OF $11,941 5.5% Y NP N Specially Serviced 01/05/2026 - - 27 Vancouver Center North Tower OF $11,000 5.0% Y FCL N Foreclosure 06/26/2024 - - 28 Regent Portfolio IN $9,362 4.3% Y REO Y REO 08/03/2018 $5,344 57.1% 36 Golds Gym - Richland, WA RT $4,992 2.3% N C N Matured-Performing 06/17/2026 - - 40 Two Edison Lakes Office OF $4,213 1.9% N NP N Non-Performing Maturity Balloon 08/02/2022 $1,390 33.0% Total K-LOCs $170,761 78.1% $45,564 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

Details concerning the classes with rating changes are as follows:

  • Class C to BBB- (sf) from A (sf)
  • Class D to CCC (sf) from B (sf)
  • Class E to CC (sf) from CCC (sf)
  • Class F to C (sf) from CC (sf)
  • Class X-D to CCC (sf) from B (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

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.

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