KBRA Affirms the Rating of Argentic Risk Retention Pass Through Certificates, MOA 2020-H7 E
10 Jul 2026 | New York
KBRA affirms the outstanding BBB- (sf) rating of Argentic Risk Retention Pass Through Certificates, MOA 2020-H7 E, a $22.4 million pass through certificate. The rating is solely dependent on the rating of the underlying E-RR certificate within MSC 2019-H7, a CMBS conduit securitization rated by KBRA. The rating action follows a surveillance review of the underlying transaction, which has exhibited an increase in KBRA's estimated losses since last ratings change in July 2025. However, the magnitude of the changes does not warrant a rating adjustment at this time.
As of the June 2026 remittance report, there are three specially serviced assets (4.6% of the pool balance), two of which are in foreclosure (3.7%), and the other is REO (0.9%). KBRA identified eight K-LOCs (14.9%), including the specially serviced assets. Of the K-LOCs, six (11.8%) have an estimated loss. Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 90.8%, compared to 89.1% at KBRA's last ratings change and 98.3% at securitization. The KDSC is 1.94x, compared to 1.98x at KBRA's last ratings change and 1.88x at securitization.
Rating Sensitivities
The factors that can lead to qualification or change of the rating include: 1) The rating of the pass through certificate is directly and solely dependent on the rating of its underlying collateral certificate, 2) The rating of the underlying collateral certificate is dependent on the performance of the CMBS conduit transaction that issued them, which is a function of the credit behavior of the underlying loans and performance of the properties that serve as loan collateral,and 3) The scope and interpretation of risk retention regulations is largely untested in any legal or regulatory proceedings. Adverse interpretations or actions by legal or regulatory authorities could result in qualification or withdrawal of ratings on the pass through certificate.
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