KBRA Downgrades the Rating of Argentic Risk Retention Pass Through Certificates, MOA 2020-WC52 D
10 Jul 2026 | New York
KBRA downgrades the BBB- (sf) rating to BB (sf) for the Argentic Risk Retention Pass Through Certificates, MOA 2020-WC52 D, a $25.4 million pass through certificate. The rating is solely dependent on the rating of the underlying D-RR certificate within WFCM 2019-C52, a CMBS conduit securitization rated by KBRA. The ratings action follow a surveillance review of the transaction, which has experienced realized losses, as well as an increase in estimated losses since KBRA's last ratings change in July 2024. The pool incurred an $18.7 million realized loss in July 2025 and KBRA estimates an additional $27.4 million of loss given defaults.
As of the June 2026 remittance report, there are two specially serviced loans (6.0%) within the underlying trust, one of which is delinquent (3.5%). KBRA identified 11 K-LOCs (17.5%), including the special serviced loans. Of the K-LOCs, six (9.7%) have estimated losses. Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 96.4%, compared to 99.3% at the last ratings change in July 2024 and 98.7% at securitization. The KDSC is 1.81x, compared to 1.83x at the last ratings change and 1.96x 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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